Seven Travel Planning Steps & Their Impact on Hotel Distribution Strategy

Presentation by Robert Cole of RockCheetah for the Hospitality Financial & Technology Professionals (HFTP) 2011 HITEC Conference June 21, 2011 in Austin, Texas.

Transcript

1. Distribution Super Session Seven Travel Planning Steps & Their Impact on Hotel Distribution Strategy Image: Brave Heart (Flickr)
2. Session Overview • Different Perspective on Distribution • Hotel Distribution Challenges • Discussion of Seven Step Travel Process – Five Minute Presentations on Each Step – Each Step Followed by Question Period June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 2 Image: Images by John 'K' (Flickr)
3. The Team June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 3 Image: ohad* (Flickr) • Robert Cole – RockCheetah Founder • Alan Genin – Great Wolf Resorts Corporate Director of Revenue Management • Ran Weerasuriya – Mammoth Mountain Director of Revenue Management • Thomas Patchin – Station Casinos Senior Vice President, Interactive Marketing • Kurien Jacob – Highgate Hotels Senior Vice President Revenue & Distribution • Loren Gray – Ocean Properties Director of E-Commerce • Tanya Pratt – Fairmont Raffles International Executive Director - Customer Information Systems
4. A Different Perspective on Hotel Distribution • The Focus Will Not Be On – Global Distribution Systems – Online Travel Agencies – Private Sale Websites – Group Buying – XML Interfaces – The Merchant Model – Search Engine Optimization – Mobile Web Versus Native Apps June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 4 Image: ::hap (Flickr)
5. Distribution Isn’t Just Technology • Right Product in the Right Place at the Right Time through the Right Channel at the Right Price for the Right Guest Not Just Making a Booking – Gaining a Customer June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 5 Image: mikebaird (Flickr)
6. Customer Engagement is King June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 6 Image: Defence Images (Flickr)
7. Loyalty is Based on Values Example: jetBlue – Integrity – Passion – Safety – Caring – Fun Value Drives Transactions • Values Drive Loyalty June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 7 Image: maistora (Flickr)
8. Seven Stages of Travel June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 8 PLANNING (How) VALIDATION (Who) BOOKING (When) TRAVEL (Where) SHARING (Wow) RESEARCH (What) INSPIRATION (Why) Image: kevindooley (Flickr)
9. Six Hospitality Touch Points June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 9 Pre-Stay In-Destination On-Property Departure Post-Stay Arrival
10. Multiple Traveler Personas June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 10 Conference Training Relocation Solo-time Family Vacation Romantic Getaway Business Trip Convention Weekend with “The Guys” Image: Greything (Flickr)
11. • Different Brands Should Look Different • Compare the Following Six Examples – Upscale Baltimore Inner Harbor Hotels • Game: Guess the Brand – With Logos & Names Blacked Out – Question: Can a Guest Do It? • Profit Only Results From Value is Created June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 11 Result: One Size Doesn’t Fit All
12. What brand is this? June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 12
13. Unique selling proposition? June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 13
14. Competitive differentiation? June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 14
15. Wait, did we repeat this one? June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 15
16. Did the sign on roof change? June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 16
17. Nicer design, but is it unique? June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 17
18. Inspiration Robert Cole – RockCheetah Founder June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 18 Image: another.point.in.time (Flickr)
19. Morgans Hotel Group June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 19
20. Morgans Hotel Group June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 20
21. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 21
22. Andre Balazs/The Standard June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 22
23. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 23
24. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 24
25. Research June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Alan Genin| Great Wolf – 25 Alan Genin – Great Wolf Resorts Corp. Director of Revenue Management Image: Great Wolf Resorts
26. • 11 Indoor Water Park Resorts - 4200 Rooms • 85% Transient Leisure • 60% of Bookings via Brand.com • 90% of Those Booking via Contact Center Are or Have Been Online • Moms are Primary Researcher • Limited Direct Competition • Complex Value Proposition June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Alan Genin| Great Wolf – 26 Great Wolf – Background
27. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Alan Genin| Great Wolf – 27 Be Present Mom Facebook/ Social Ask A Mom Trip Advisor/ Guest Reviews YouTube greatwolf.com
28. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Alan Genin| Great Wolf – 28 Be the Conduit Mom Facebook/ Social Ask A Mom Trip Advisor/ Guest Reviews YouTube greatwolf.com Mom Facebook/ Social Ask A Mom Trip Advisor/ Guest Reviews YouTube greatwolf.com
29. • Provide Platform on brand.com • Support Á La Carte Packaging • Convert Customer Service Contact into Sales Opportunity • Know Enough to Know When You Don’t Know June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Alan Genin| Great Wolf – 29 Don’t Control – Enable
30. Planning June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Ran Weerasuriya | Mammoth – 30 Ran Weerasuriya – Mammoth Mountain Director of Revenue Management Image: another.point.in.time (Flickr)
31. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Ran Weerasuriya | Mammoth – 31 Mammoth – Background • 3rd Most Visited Ski Area US – 1.3M Annual Skiers • Ski Area – 3,500+ acres – 28 Lifts – 150 Trails – Open Nov-Jul – 2011 Snowfall: 669” (~56ft) • Guest Facilities – 4 slopeside hotels – 5 restaurants – 7 bars – 4 day lodges – 22 sport/rental shops – 6 on-hill snack bars/food courts/cafeterias – ski & snowboard school, race department, lockers, child care Los Angeles San Jose San Francisco Portland 11,053ft
32. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Ran Weerasuriya | Mammoth – 32 Mammoth – Path to Purchase • Key Strategies – Deliver content specific to customer needs & interests throughout their planning & consideration process – Leverage digital media to create engaging, memorable interactions with the Mammoth brand – Align heavy-up communications with key promotional periods to drive purchase/bookings. Unaware Aware Consider Experience Advocate Web; MyMammoth
33. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Ran Weerasuriya | Mammoth – 33 Mammoth – Website • Homepage – Event & Activity-driven Content • Trip Planner – Airfare – Lodging – Tickets, Lessons & Rentals – Shopping Cart Model
34. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Ran Weerasuriya | Mammoth – 34 Mammoth - MYMammoth • Traveler Priority – Experiencing a Destination like a Local & Getting Insider Knowledge *** • When Planning a Trip – 40% of travelers listened to opinions of family and friends – 43% used user-generated content – 27% used social media – 28% used a mobile device • Core objective of MYMammoth: – Get paid repeat visitors to come to Mammoth Mountain more often than they are now
35. Validation Thomas Patchin – Station Casinos Senior Vice President, Interactive Marketing June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Thomas Patchin | Station Casinos – 35 Image: Red Rock Casino
36. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Thomas Patchin | Station Casinos – 36
37. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session www.welovelocals.com • Strategy: o Keep direct guest relationship o Drive incremental guest visits o Top of mind for the guest • Definition of Success: o Revenue & Learning Objectives o End game o Guest loyalty and share of wallet • Goals: o Support of key brand value proposition o Creation of a database o Drive guest(s) into properties o Non-Station guests o Additional visit from existing customers Thomas Patchin | Station Casinos – 37
38. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session • Evolution : o Social Media o Tight integration to E- commerce platform o Preferences capture and growth of database o Growth of database across platforms and channels o Property specific bundled offers o Validation through sharing o Experience in on-line that drives off line conversations o Dining, entertainment, hotel conversations o Opportunities o How deep and broad will the messaging grow o Risks o Discounting versus long value proposition Thomas Patchin | Station Casinos – 38
39. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session  New purchasable weekly coupons are presented in green.  New outlet specific coupons.  When the quantity offered runs out, a “sold out” will appear on the coupon.  New purchasable coupons are changed regularly. Thomas Patchin | Station Casinos – 39
40. Booking Kurien Jacob - Highgate Hotels Senior Vice President Revenue & Distribution June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Kurien Jacob | Highgate – 40 Image: Park Central New York
41. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Kurien Jacob | Highgate – 41 The Booking Process
42. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Kurien Jacob | Highgate – 42 A very valuable potential booking: •6 nights – long length of stay •About a month in advance – revenue manager’s perfect booking •Staying in June – low season in NY •Stay straddles a weekend – lower occupancy for business hotels •2 people – will spend a lot on ancillary revenues at the hotel This guest should qualify for ALL SORTS of special offers! Why is this problematic? 44 price points and products is quite a lot for a guest to make sense of. Three different “sales” that offer nothing different – they just kick in under different conditions The Best Available Rate is not nearly the best available rate The packages are priced way too high for them to make sense – because the room component in these rates are not discounted like the rates in the “sales” This is all IRRATIONAL to the consumer. This makes more sense to the consumer
43. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Kurien Jacob | Highgate – 43 Clear Options for Consumer
44. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Kurien Jacob | Highgate – 44 Rich Pictures in Booking Pages
45. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Kurien Jacob | Highgate – 45 Up-sell length of stay Up-sell room type, showing the price difference per night. Guarantee revenue or earn more revenue by offering stricter (advance purchase) or more liberal (last minute no-fee cancellation) reservation policies.
46. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Kurien Jacob | Highgate – 46 Results From Single Up-sell Mechanism = Extend Your Stay (EYS) •52% increase for Hotel 1 •33% Increase for Hotel 2
47. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Kurien Jacob | Highgate – 47 Conclusions • Know Demand Sources & Align Booking Process • Study Conversion at Various Stages in Process • Ensure Booking Platform is not Add-on Module on Legacy CRS Technology • Make Sure Booking Process is Clear & Simple • Don’t Expose Revenue Management Complexity • Sell Ancillary Products After Customer is Committed to Booking Room
48. Travel June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Loren Gray | Ocean Properties – 48 Loren Gray – Ocean Properties Director of E-Commerce Image: Westin Key West
49. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Loren Gray | Ocean Properties – 49 Ocean Properties Background • 140 Properties – US, Canada & Caribbean • Multiple Brands & Independent – Marriott, Starwood, Hilton, IHG • Ancillary Products – Spas, Golf Courses, Ferry Boats, Restaurants
50. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Loren Gray | Ocean Properties – 50 Social Local Mobile (SoLoMo) • Electric picture frames at the front desk encouraging guest to text a general or specific interest keyword for in-house discounts and communications, (make sure the first communication gives a value offer). • Suggested itineraries based on categories of interest, (soft adventure / family / ecotour / cultural-historical / off the beaten pass / local unique) offering gps downloads via online or onsight, <all of this is mirrored in content in social media> • Mobile based menus and click to call for service anywhere at your property, (we use it for beach and pool service) • Click to call on your mobile site for concierge and dinner reservations, shuttle requests,(variation being tested is to use local twitter finder software to locate your guest without the guests needing to, good for pre- arrival locator too). • QR coded wine flights and menus • Bar promotions that feature qr codes and texting to participate • Early incentives to proximity check-in's • Ipad interfaced to PMS's for the lobby lizards for faster check-in and out • Ipads for reading and web based email / gps's / ipods with music themes for concierge to check out to guests
51. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Loren Gray | Ocean Properties – 51 Promotion Technology • Beverage Sales – Liquor Specials (Bacardi Girls) • Local Attraction – In Room Samples/Tour Offer (Micro-Brewery) • Guerilla Marketing – Foursquare/Twitter Integration (Bar Specials)
52. Sharing Tanya Pratt – Fairmont Raffles International Executive Director - Customer Information Systems June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Tanya Pratt | Fairmont/Raffles – 52 Image: Fairmont San Francisco
53. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Tanya Pratt | Fairmont/Raffles – 53 Fairmont Hotels & Resorts Everyone’s an Original
54. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Tanya Pratt | Fairmont/Raffles – 54
55. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Tanya Pratt | Fairmont/Raffles – 55
56. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Tanya Pratt | Fairmont/Raffles – 56
57. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Tanya Pratt | Fairmont/Raffles – 57
58. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Tanya Pratt | Fairmont/Raffles – 58
59. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Tanya Pratt | Fairmont/Raffles – 59
60. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Tanya Pratt | Fairmont/Raffles – 60
61. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Tanya Pratt | Fairmont/Raffles – 61
62. Review: Seven Stages of Travel June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 62 PLANNING VALIDATION BOOKING TRAVEL SHARING RESEARCH INSPIRATION
63. Goal: Memorable Travel Experiences • Creating End-to-End Travel Experiences – Bill LaMacchia Sr. – LaMacchia Enterprises • Exceptional Experiences & Lifelong Memories – Isadore Sharp – Four Seasons Hotels • Best Possible Experience at Each Moment of Truth – Jan Carlzon – Scandinavian Air Systems • The Travel Story Arc – Henry Harteveldt – Forrester Research June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 63 Image: gtall1 (Flickr)
64. Key Take-Aways • Design the End-to-End Guest Experience – Know Your Customer – Personalize – Know Your Competition – Differentiate – Know Your Product – Customize – Create the Experience – Tailor Scenarios • Engage the Customer – Understand Each Phase – Provide Solutions – Focus on Guest Touch Points – Create Value – Drive Revenues & Earn Margins – Monetize June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 64
65. June 21, 2011 – Austin, Texas HFTP HITEC • Distribution Super Session Robert Cole | RockCheetah – 65 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 the short survey that will be sent to you via e-mail at the end of the day. THANK YOU for attending HITEC! Learn how HFTP membership can benefit you, visit www.hftp.org