Mobile Hotel Distribution - No, It’s Not Billboards and Neon Vacancy Signs

Presentation by Robert Cole of RockCheetah for the Hospitality Financial & Technology Professionals (HFTP) 2010 HITEC Conference June 23, 2011 in Orlando, Florida.

Transcript

1. Mobile Distribution No, It’s Not Billboards and Neon Vacancy Signs Robert Cole Founder, RockCheetah rockcheetah.com/blog
2. Presentation Overview • Why Mobile is Important • Why Mobile is Challenging • Why Mobile Travel is Complicated • Mobile Web v. Mobile Apps • Mobile Business Considerations • Mobile Development Considerations • Location Based Services • Disruptive Mobile Innovations June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 2
3. In the Good Ol’ Days… Billboards Vacancy Signs June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 3 Mobile Distribution Was Pretty Much Limited to: and Image Credit: BGLewandowski on Flickr | 28flavors on YouTube
4. Then, the Internet Changed Everything June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · 4 Image Credit: Thomas Hawk on Flickr
5. 15 Years Later, Mobile Changes It All Again June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 5
6. Why Mobile is Important • Extends Most Important Web Attributes – Device Follows the User – Mobile – GPS Provides Geographic Context - Local – Supports Many Forms of Communication – Social – Devices are Typically Not Shared – Personal • Smartphones Extends the Senses – Sight (Camera) – Sound (Microphone) – Feeling (Touch-screen) – Balance (Accelerometer) June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 6
7. Google’s Perspective on Mobile Google’s New Credo: Mobile First June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · 7
8. Why Mobile Can Not Be Ignored June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 8 Smartphone use is on the rise. Mobile web adoption is ramping up 8x faster than Internet in the mid-90s. In the Travel vertical, purchase intent on Mobile ads is 5x higher than on desktop ads. Mobile Travel bookings are projected to grow 700% in 2 years. 0 500 1000 1500 2000 Mobile travel searches $20M 2008 $160M 2010 Projection Data Sources: : Forrester, 2009. Google Internal Data, February 2010. InsightExpress, February 2010. PhoCusWright, January 2010
9. Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 New Devices Impact Mobile Hotel Queries June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 9 iPhone iPhone 3G Android G1 Blackberry Storm Palm Pre iPhone 3GS Android myTouch Android Nexus One Moto Droid & Eris Google Mobile “Hotel” Category Query Growth Device Launches Significant Growth in 3 Years Data Source: Google Internal Data
10. Mobile Advertising & Booking is Real • Google / Vegas.com Case Study – Click-through rates may be a lot higher for mobile ads than desktop – Impressive returns on the iPhone with campaign CTR nearing 20% • Google Travel Booking Recommendations – Purchase intent on Mobile Travel ads is 5x Higher than desktop ads – Target efforts • Drive-up bookings • Incremental night stays • Last minute flight changes – Highlight promotions – Motivate consumers to interact and spend with your brand June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 10
11. Need More Convincing? • Apps Work Well for Highly Engaged Users – 25% of iPhone & Android Users 2 hours per day on Apps – Booking Functionality is Expected by Consumers – Support Branded Assets by Driving Downloads & Usage • Let Travelers Use The Phone! – Adding Phone Number to Ad Text Increased CTR 5-30%! – Google Mobile Calls 22% More Likely to be Relevant & 31% More Likely to Result in Booking than calls other lead sources – 1 Out of 3 Mobile Searches Has ‘Local Intent’ June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 11
12. Mobile Travel Booking Is Different • Booking Window is Shorter. More Last Minute • Search Queries are 2-3 Words • Requires Create Mobile Landing Pages for SEO • Separate Campaigns Required for Mobile – Must Reflect Different User Behaviors • Geo-location is Important, but not Everything – Time of User Access is Important – Lunch-time / Evening June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 12
13. Travel Process is More Complex - Impacts Traveler Goals & Perceptions June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 13 Guest’s Perception of Web/Mobile Travel Experience Source: RockCheetah Proprietary , Seven-Step Travel Process
14. Guest Relationship is More Complex - Multiple Traveler Personas • Individual Maintains Same Demographic, but • Purpose of Travel Dictates Decision Processes • Multiple Traveler Personas Exist – Business Meeting – Industry Conference – Family Vacation – Romantic Getaway – Weekend with College Friends June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 14
15. Hotel Distribution Channels Shifting June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 15
16. Please, Let Them Book the Reservation June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 16 Data Source: iPerceptions 4Q09 Hospitality and Tourism Industry Report
17. Mobile Challenges – Fragmentation • Siloed Operating Systems – Apple iOS v. Google Android v. BlackberryOS v. Symbian 3 v. Windows Phone • Different Hardware Capabilities – Varied Power, Features & Screen Sizes • Mobile Web v. Apps – Provide Different User Experiences • Politics v. Rich Internet Applications – Flash / Silverlight / HTML 5 & H.264 June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 17
18. Technology is More Complex - Welcome to the Splinternet* • Golden Age of the Web Ending – Information Sharing Was Based on Compatible Formats • Now, the Age of Walled Gardens – Content Controlled by Platform Owner – Content Hidden From Search Engines by Passwords • Apple – iStore – Excludes Flash Applications – Bars Google AdMob Advertising • Facebook – Friends & Likes – Social Graph Exists Only After Facebook Login June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 18 *Term “Splinternet” coined by Josh Bernoff, Forrester Research Senior VP - Idea Development
19. Splinternet Platform Characteristics June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 19 Source: Forrester Research
20. Splinternet Ad & Experience Characteristics June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 20 Source: Forrester Research
21. Operating System Evolution Innovation or Fragmentation? • Android – One Year Old / 4 Different Versions – Version 1.5 – 24.9% Share – Version 1.6 – 25.1% – Version 2.1 – 50.0% – Version 2.2 – Available for Nexus One • Google Approach “Google treats partners equally, but will not slow the rate of innovation so weaker players can keep up” “By constantly raising the bar, both in terms of reference devices and software, Google aims to keep innovating and drive that innovation as a differentiator” “Android isn't a summer camp for handset vendors and not everyone gets a trophy for showing up” June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 21 Source: Michael Gartenberg Altimeter Group
22. Mobile Web v. Mobile Apps • Mobile Web Benefits –Open Standards –Cross Platform Functionality –No Proprietary APIs –Cross-Application Integration –No 3rd Party App Stores –No Revenue Sharing June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 22
23. Mobile Web v. Mobile Apps • Mobile App Benefits –More Robust GUI Options –Does Not Require Online Access –Access to Phone “Senses” & Native Data –App Store Marketing Opportunities –Clear Monetization Model June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 23
24. 4P’s of Mobile Strategy Development • People – Who is the Target User? • Purpose – What Do the Users Want to Accomplish? • Platform – What Types of Devices Are They Using? • Process – Define Most Efficient Navigation & Workflow June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 24
25. Most Important Questions: • What Are Your Mobile Objectives? – Bookings – Ancillary Revenue – Customer Service • How Can You Create Value For the Guest? – Save Time? – Save Money? – Enhance Experience? June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 25
26. Mobile Apps – Business Considerations • Business Models – Applications – Technology (Revenue Share with App Store) – Subscriptions – Unique Content (Rev Share with App Store) – Publishing – Advertising (Share Revenue with Ad Network) • Monetization Methods – Free – Freemium – “Light” Version Free, “Deluxe” Version is Paid – Full Retail Price June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 26
27. Mobile Apps – Marketing Considerations • Perfect World: Volume Drivers – Good Device – Good Network – Good Browser • Promotion – Must Be Differentiated – Provide Unique Benefits • Greatest Challenges – Breaking Through Clutter – Must be Found – Maintaining Engagement / Avoiding Deletion June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 27
28. iStore Page of Popular Travel Apps June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 28 • Top 20 Travel Apps • Google Earth • Free Translator • Urbanspoon • Yelp • MapQuest 4 Mobile • Trapster speed trap alerts • USA TODAY • KAYAK Flight, Hotel Search • Free Wi-Fi Finder • AppBox Lite • OpenTable • FREE Spanish Tutor • Currency • foursquare • Southwest Airlines • USA TODAY for iPad • MotionX GPS Drive • OpenTable for iPad • Cheap Gas! • CheckPlease Lite - Tip Calculator
29. Mobile Development Considerations • REMEMBER –Your Website IS NOT a Mobile Site • MUST –Provide Information Quickly –Focus on Specific Tasks –Direct Path to Data –Leverage Device Features June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 29
30. Mobile Functionality – Best Practices • One-click Driving Directions – Know Phone Location / Know Destination • Click to Talk – Provide Phone Number in Mobile Ads – Include Context Appropriate Phone Numbers • Integrate Social Networks – Help Customers Promote Your Brand / Location • Negotiate Development Costs Aggressively – Restaurant Group: 23 Sites = $8,000 (Orig. $37K) June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 30
31. Mobile Promos: Ground Rules Apply • Protect Guest Privacy • Opt-In for Promotional Message Delivery • Are Offers Relevant? – Popular or High Demand Product/Features? – Appropriate for Individual? – Provides Consumer Value? – Simple to Convert? • Avoid Bait & Switch Offers and Trailer-plays • Provide Options to Engage Their Social Network • In Destination Engagement May Not Be Forever June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 31
32. Mobiata – StayHip (For TravelClick) June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 32
33. Can Your iPhone App Compete? June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 33 “I was in downtown Orlando for MegaCon this weekend and bid for a last minute three-star room for $75 – all while in line for a panel.”
34. A New Location, Location, Location for the Hospitality Industry June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 34 Image Credit: geoftheref on Flickr
35. Location Based Services • Foursquare – Enables Free Setup & Custom Badges – Mayor, Check-In, Frequency, Wildcard Specials • Yelp! – Monetizing Setup , Plus $300-$1,000 Monthly – Heavily Food & Beverage Oriented • Gowalla – IHG Partnering for “HIT it Big” Promotion • Check-in on Weekend Stay, Register for Bonuses June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 35
36. Location Based Services - Continued • Best Prospects for Offers – Frequent Guest Program Members – Returning Guests (Non-Program Members) – First Time Guests (Not Familiar with Property) • Types of Specials – Most Frequent Visitor (Mayorship) – Check-In (Discount / Value Add for Visit) – Frequency (Bonus for Nth Check-In) – Wildcard Offer (Special Offer for Having a Badge) June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · 36
37. Disruptive Mobile Innovations • Yelp! Monocle - Augmented Reality – Point Camera Down Street, See Reviews • Kayak Connect - Booking – Mobile Meta-search Gets Transactional • Google Store Views – Google Maps Street Views Goes Indoors • Apple iTravel – Streamlining the Travel Experience • Openways – Innovative Mobile Door Locking System June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 37
38. Yelp! Monocle June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 38
39. Kayak Connect June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 39
40. Apple iTravel – Booking Transactions June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 40
41. Apple iTravel – Traveler Identification June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 41
42. Apple iTravel – Revolutionary Air Experience? June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 42
43. iTravel – Revolutionizing Event Merchandising June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 43
44. iTravel – Revolutionizing Conferences? June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 44
45. Openways – Doors or Distribution? • Uses Mobile Phone as Room Key – Engages Guest Prior to Arrival / Kept through Stay • Does not Require Replacement of Door Locks – Device Added to Existing Lock Set • Smartphone – App Downloads Unique Audio Code From Cloud • Feature Phone – SMS Text Message / Calls Servcer / Plays Code • Will Support NFC in Future June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 45
46. Every Innovative Mobile Idea is Not Always a Good Idea… June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · Page 46
47. June 23, 2010 - Orlando, Florida HITEC 2010 - Mobile Distribution Robert Cole | RockCheetah · 47 What Did You Think? In order to help us create/provide a better HITEC experience in the future, please take a second to fill out our short survey. And THANK YOU for attending HITEC! Learn how HFTP membership can benefit you, visit www.hftp.org Robert Cole RockCheetah LLC robert@rockcheetah.com http://rockcheetah.com/blog/