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US Airlines Investigated For Possible Collusion

US Airlines Investigated For Possible Collusion | Hotel Marketing & Revenue Strategies | Scoop.it
A civil antitrust investigation appears to focus on whether airlines illegally signaled to each other how quickly they would add new flights, routes and extra seats.
Francesco Canzoniere's insight:

The U.S. government is investigating possible collusion between major airlines to limit available seats, which keeps airfares high, according to a document obtained by The Associated Press.
The civil antitrust investigation by the Justice Department appears to focus on whether airlines illegally signaled to each other how quickly they would add new flights, routes and extra seats.

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Richard Stern's curator insight, July 2, 2015 2:11 PM

You may want to work with travel agents to see what the correct information available should be. The airlines are looking out to make profit you need an advisor that is experienced.

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Why Do Consumers Prefer Booking With Online Travel Agencies?

Why Do Consumers Prefer Booking With Online Travel Agencies? | Hotel Marketing & Revenue Strategies | Scoop.it
Many hotels are experiencing a notable increase in reservations coming from online travel agencies, most notably those from Booking.com.
Francesco Canzoniere's insight:

My last article on Tnooz: the reasons why OTAs are winning consumers trust and increasing their bookings share.

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Frédéric Pressac's comment, December 20, 2014 6:43 AM
What are OTAs doing better than hoteliers in order to get more sales?
Francesc Pujol's curator insight, November 28, 2015 6:29 PM

My last article on Tnooz: the reasons why OTAs are winning consumers trust and increasing their bookings share.

Marry Wislon 's curator insight, January 24, 2017 7:07 AM
How to Install Windows 10 on Mac Yosemite Using Boot Camp? Call Toll-Free- 1-800-281-3707
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Google To Give Prime Visibility To Hotel Price Disparity

Google To Give Prime Visibility To Hotel Price Disparity | Hotel Marketing & Revenue Strategies | Scoop.it
Francesco Canzoniere's insight:

Google is testing putting Google Hotel Ads (GHA) above any other search results, even those od Google Adwords. In this way, the visibility of the OTAs that are breaking hotel rate parity will grow substantially making this space even more valuable and expensive for hotels, OTAs and metas but also more valuable for users searching for the best price. And this is the main effect that Google is pursuing in order to build its new must be space for any hotel ads!! Tripadvisor is already using this space to get more traffic to its underperforming hotel metasearch service. Will Trivago and the other metasearches be forced to show up here too? Should they worry about their future?... What about the potential increase in ads competition and therefore of its distribution costs for all the hotels?...

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How do OTAs, Metasearch, Hotels and Airlines Hunt for Clients Online 

How do OTAs, Metasearch, Hotels and Airlines Hunt for Clients Online  | Hotel Marketing & Revenue Strategies | Scoop.it
In previous posts, I've looked at financials and competitive trends for publicly traded online travel companies. In this post, I will look at traffic and marketing channel data for some of the…
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See traffic and marketing channel data for some of the world’s largest online travel websites for Online Travel Agencies, hotels, airlines and metasearches.

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Amazon Launches an Alexa System for Hotels, Rentals and possibly even Airbnb 

Amazon Launches an Alexa System for Hotels, Rentals and possibly even Airbnb  | Hotel Marketing & Revenue Strategies | Scoop.it
Alexa is coming to your hotel room. Amazon this morning is announcing a new program called Alexa for Hospitality, designed to bring its voice assistant technology to everything from chain hotels to vacation rentals. The system can be customized to include key guest information, like checkout time o…
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Personalised Pricing: Right Data Instead of Big Data

Personalised Pricing: Right Data Instead of Big Data | Hotel Marketing & Revenue Strategies | Scoop.it
Insights The best way to take the focus off the price discussion is automatic pricing.
Francesco Canzoniere's insight:

In order to get into direct contact with their guests early in the booking process, hoteliers have to overcome the practice of commoditisation. The best way to take the focus off the price discussion is automatic pricing and promotions.

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Hotel Loyalty Program Members Have Become Anything But "Loyal" 

Hotel Loyalty Program Members Have Become Anything But "Loyal"  | Hotel Marketing & Revenue Strategies | Scoop.it
Hotel chains' major initiatives to drive more travelers into their loyalty funnel appear to be resoundingly successful. The rise of member-only rates and perks such as free Wi-Fi have been nibbling away at rate parity and helping hotel brand sites and apps compete with online travel agencies, according to Phocuswright's latest market sizing and forecasts of the U.S. online lodging market.
Francesco Canzoniere's insight:

Are Hotel Direct Booking Campaigns creating truly loyal customers who develop a relationship with the brand and return to book again and again? The vast majority of loyalty program members shop outside and would book outside.

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Airbnb for Hotels: The Good, the Bad and the Ugly 

Airbnb for Hotels: The Good, the Bad and the Ugly  | Hotel Marketing & Revenue Strategies | Scoop.it
Although it has already stated its low commissions, little has been written about the ticking time bomb for distribution which is the different system of costs and prices
Francesco Canzoniere's insight:

Surprisingly, what could put an end to price parity is not state regulations nor the revolt of hoteliers in favour of their direct sales but rather Airbnb itself. It has the potential and the appropriate model to do so.

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Airbnb Enters Officially into the Hotel Distribution But with a Strategic Difference, for now... 

Airbnb Enters Officially into the Hotel Distribution But with a Strategic Difference, for now...  | Hotel Marketing & Revenue Strategies | Scoop.it
Airbnb is to allow hotels and other accommodation providers to list on the site for the first time through an official third party distribution network.
Francesco Canzoniere's insight:

Airbnb says it will retain a level of quality control over the properties coming down the distribution pipe, meaning they will have to meet certain criteria such as unique design characteristics, the inclusion of local influences, access to common gathering spaces and high-quality photography on their content pages.

The company also wants to include properties that offer local tours, use local produce and beverages.

Airbnb is expected to allow chain hotels to participate in the program but is pushing the "unique experience" angle from those it wants to list on the site.

But, in short, any accommodation type is welcome, from boutique hotels, lodges, timeshares and hostels to ryokans in Japan, pensions in Korea and so-called "heritage hotels" in India.

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OTAs Keep Growing despite Hotels Give Loyalty Members Unique Discounts for Booking Direct 

OTAs Keep Growing despite Hotels Give Loyalty Members Unique Discounts for Booking Direct  | Hotel Marketing & Revenue Strategies | Scoop.it
Hotels have long lamented their dependence on online travel agencies and their ascribed high cost of distribution. Over the years, Hilton, IHG and Hyatt are among the brands that have tried to cut the cord, only to rejoin the OTAs with fresh, new agreements. While it's easy to say that hotels are fighting a losing battle, the fact is that chains are making some inroads.
Francesco Canzoniere's insight:

The truth is that OTA hotel sales keep growing because U.S. hotel sales are rising modestly while the shift from offline to online is accelerating at nearly three times the pace.

This doesn't mean hotel loyalty rates– whereby loyalty members get unique discounts for booking direct – are a failure. If anything, hotels would still be losing share considering that most travelers – especially millennials – prefer the choice offered by OTAs1. Hotel chains have shored up their position, especially with older, more loyal travelers. In addition, millions of new travelers, many in the 18-34-year-old age group, have joined programs for the low-hanging fruit (free Wi-Fi and lower prices).

To be sure, there is plenty of work to do for hotels to measure the impact of two-plus years of loyalty rates on the bottom line. If travelers are simply taking advantage of them to save on single bookings, they are not exactly loyal customers. Regardless, the fact that hotels are holding their own vs. OTAs should make many owners and operators happy, but with hotels vying for a perfect world without intermediaries, the question is: Will they ever be happy?

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Baby Boomers Spending More Than Millenials in Travel 

Baby Boomers Spending More Than Millenials in Travel  | Hotel Marketing & Revenue Strategies | Scoop.it
Millennials are the generation that all industries need to understand, and if a company or industry doesn't get them, it's likely the final nail in their coffin. As travelers, millennials are an adventurous demographic that seeks authentic experiences, fueling their love for travel. However, as a group, they are still very price-sensitive and brand-agnostic; millennials like to shop around and find the best travel deals. In its love affair with millennials, the travel industry runs the risk of overlooking another key group of travelers: baby boomers.
Francesco Canzoniere's insight:

Millennials, as a group, they are still very price-sensitive and brand-agnostic; millennials like to shop around and find the best travel deals. In its love affair with millennials, the travel industry runs the risk of overlooking another key group of travellers: baby boomers.

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The Role of Loyalty Programs on How the Battle between Hotels and OTAs Might End Up 

The Role of Loyalty Programs on How the Battle between Hotels and OTAs Might End Up  | Hotel Marketing & Revenue Strategies | Scoop.it
Logically, hotel reward program members have always booked a disproportionate amount of business.
Francesco Canzoniere's insight:

 

A study by Kalibri Labs indicates the discounting strategy has also slowed OTA share growth, yielding direct bookings that are approximately 8.6% more profitable when considering direct costs. However, one key statistic that was omitted in the calculation was the profit dilution from existing rewards members that were now booking at lower rates.

Phocuswright found that prior to the launch of the hotel brand "book direct" campaigns, the OTA booking channel was used by 25% of US hotel guests.

It can be argued that the blanket discounts offered to all reward program members are designed to alter the behaviour of the one in four leisure travellers who patronize the OTA channel.

The resulting profit dilution could potentially be significant.

It should also be noted that the hotel brands are not footing the bill for the direct booking programs.  The bad news is for the hotel owners that are bearing the full brunt of funding the rate discounts, free wifi, and accrual of loyalty points.

The problem is that rewards programs trade in gamification, not loyalty. Frequent business travellers, the lifeblood of every hotel program, are fundamentally translating employer corporate travel spend into a personal benefit for future leisure travel.

They are playing with their bosses’ money. Behaviors often change when those travellers are paying their own tab.

Phocuswright calculates 69% of hotel reward program members participate in multiple programs, with 41% enrolled in more than three.

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Google Has Ganged Up With Major Hotel Chains to Undercut OTAs Competition, According to the WSJ 

Google Has Ganged Up With Major Hotel Chains to Undercut OTAs Competition, According to the WSJ  | Hotel Marketing & Revenue Strategies | Scoop.it
An editorial slams Google for allegedly helping hotel chains and hurting online travel agencies.
Francesco Canzoniere's insight:

The Wall Street Journal argued that Google needs to stop allegedly giving hotels protection on keyword ads. Short of that, it argued that regulators may become interested in how Google is using its power.

With its own travel service, Google allows users to search for hotels across various OTA and hotel websites. The company charges 10% to 15% commissions on bookings made through that service, according to the editorial. So an OTA using it would owe much of the commissions it earns to Google.

The Journal also alleged that Google asks OTAs that advertise in its travel service to share a lot of information about their inventory, something OTAs are reluctant to do, given that Google essentially competes with them.

Again Google disputes all these accusations.

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Hotel Direct Sales Keep Losing Market Share vs OTAs 

Hotel Direct Sales Keep Losing Market Share vs OTAs  | Hotel Marketing & Revenue Strategies | Scoop.it
During the February 2016 Grammy Awards, Hilton launched its “Stop Clicking Around” marketing campaign, its biggest ever in Hilton’s 97 year history. Just six months earlier, Marriott launched its…
Francesco Canzoniere's insight:

For the past 2 years, major hotel chains in the US have aggressively accelerated their direct bookings push in an effort to get customers to bypass Online Travel Agencies (OTAs), mainly Priceline and Expedia. In theory, this would translate into more customers, more loyalty and a more profitable business altogether. In reality, not only didn’t OTAs lose share to hotels, but OTAs accelerated their share growth and surpassed hotels in US hotel online gross bookings in 2016 and 2017.

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EU Forces Airbnb To Be Transparent on Their Presentation of Prices 

EU Forces Airbnb To Be Transparent on Their Presentation of Prices  | Hotel Marketing & Revenue Strategies | Scoop.it
The EU has given holiday rental firm Airbnb seven weeks to change its terms and conditions in order to comply with consumer rules and be more transparent around pricing.
Francesco Canzoniere's insight:

The EU has given holiday rental firm Airbnb seven weeks to change its terms and conditions in order to comply with consumer rules and be more transparent around pricing.

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Booking.com Is Breaking Rate Parity by Integreting Third-Party Inventory

Booking.com Is Breaking Rate Parity by Integreting Third-Party Inventory | Hotel Marketing & Revenue Strategies | Scoop.it
For now, we have come across it in accommodations in Asia, provided by Agoda or CTrip. With this novelty, Booking.com has crossed a threshold with potentially enormous consequences.
Francesco Canzoniere's insight:

Since March, Booking.com is experimenting with a new service: Booking.basic. As they explain"...You may be able to make a Booking.basic reservation. Booking.basic reservations are facilitated by third party business partners...."

Booking.com is the top OTA in Europe. However, it does not always offer the best price, as anyone can easily check on metasearch engines. But, what would be the impact if Booking.com, the main OTA in Europe, definitively guaranteed the best price with Booking.basic?

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OTAs Increase German Market Share

OTAs Increase German Market Share | Hotel Marketing & Revenue Strategies | Scoop.it
Online travel agencies (OTAs) are catching up on traditional travel agents in Germany after fast growth last year, according to a new fvw dossier.
Francesco Canzoniere's insight:

Online travel agencies (OTAs) are catching up on traditional travel agents in Germany after fast growth last year, according to a new fvw dossier.

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The Inexorable Rise of Google Hotel Ads

The Inexorable Rise of Google Hotel Ads | Hotel Marketing & Revenue Strategies | Scoop.it
Google's entry into metasearch may be more than half a decade old, but it continues to be a closely watched obsession for the travel industry. Since the very beginning, Phocuswright has carefully tracked the evolution of Google travel products and their growing role in travel's search-shop-buy funnel. Phocuswright's 2017 deep dive on metasearch revealed two clear trends.
Francesco Canzoniere's insight:

Google Hotels' referrals to chains have surged since late 2017. Even though Google Hotels remains a relatively small player in hotel metasearch today but it is gaining as a source of traffic to hotels. Indeed, hotel chains may be looking to Google as a lever to loosen the enormous role OTAs play in the online hotel search-shop-buy cycle. 

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U.S. Travelers Prepared for Personalization

U.S. Travelers Prepared for Personalization | Hotel Marketing & Revenue Strategies | Scoop.it
Among travelers' main complaints about online travel planning are that it takes too long, and they need to search too many different websites to find a good deal for what they want.
Francesco Canzoniere's insight:

Around half of travellers are comfortable sharing their past or current travel plans with travel companies if it helps provide a more personalized, streamlined experience.

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OTAs Share of Marriott Bookings Keeps Growing

OTAs Share of Marriott Bookings Keeps Growing | Hotel Marketing & Revenue Strategies | Scoop.it
The company said OTAs accounted for 12% of bookings last year, up one percentage point from 2016, but it expects that an integration of the Starwood and Marriott loyalty programs will reduce their slice of the pie.
Francesco Canzoniere's insight:

Direct bookings held steady at about 70% of total bookings and Digital is now a full 26% of total reservations as part of that 70%. The OTAs in 2017 were 12%, which was up 1 percentage point penetration over the year before, Marriott CFO Leeny Oberg said. Marriott CEO Arne Sorenson said the percentage rose because Starwood Hotels & Resorts "had a higher reliance on third-party relationships. "The more leisure the hotels' demand base, the higher the third-party contributions," said Sorenson, implying that the Starwood portfolio's percentage of revenue from leisure travel was greater than Marriott's.

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Almost 2/3 of Europe's €64 Billion OTA Market Owned by Priceline Group & Expedia Inc. Together 

Almost 2/3 of Europe's €64 Billion OTA Market Owned by Priceline Group & Expedia Inc. Together  | Hotel Marketing & Revenue Strategies | Scoop.it
Just two companies, The Priceline Group and Expedia Inc., together account for nearly two thirds of the European OTA market; and together, just four companies represent nearly three quarters of all OTA revenue. Explore what this means for the future of online travel in Europe at the 15-17 May Phocuswright Europe event in Amsterdam!
Francesco Canzoniere's insight:

Just two companies, The Priceline Group and Expedia Inc., together account for nearly two thirds of Europe's €64 billion online travel agency (OTA) market, according to Phocuswright

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Data Accuracy Biggest Barrier to Personalisation for Hotel and Travel Marketeers 

Data Accuracy Biggest Barrier to Personalisation for Hotel and Travel Marketeers  | Hotel Marketing & Revenue Strategies | Scoop.it
A survey from Travel Technology Europe reveals that many hotel and travel companies want to embrace greater…
Francesco Canzoniere's insight:

4 Main Challenges Hotel Marketeers are Facing in Personalisation:

  • 51% – Having accurate customer data
  • 44% – Getting the right mix of marketing and IT
  • 44% – Identifying customers at the right times
  • 35% – Building links between products

"...At its best personalisation drives loyalty and keeps customers coming back for more, at its worst personalisation is intrusive and damaging to the bottom line.

To get it right personalisation requires a careful blend of IT and marketing skills to make sure that the data is accurate but that the human touch is still there..."

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How to Become TripAdvisor’s #1 (Fake) Restaurant

The Shed at Dulwich was the number one rated restaurant in London, with foodies, celebrities and bloggers trying to get a table. The main obstacle for them
Francesco Canzoniere's insight:

One journalist from U.S. outlet Vice decided to test out a key thesis: while reviews might be faked, it would be impossible to dupe the system into actually ranking a non-existent restaurant.

The entire story is quite revealing, showing how the system can be gamed to deliver a completely warped reality.

“The only bit of TripAdvisor that is unfakable is a restaurant itself. One day I thought: Maybe it is actually fakable.”

This was the thinking behind the Shed at Dulwich, which became the top restaurant in London — despite it not actually existing. There were three key qualities in the restaurant that Oobah Butler targeted to make his faux restaurant seem more appealing: you eat outside, it’s weird “as fuck,” it’s homely, and it’s appointment-only. Butler managed to convince reviews to capture these qualities, all through doing basic things: a verified listing using a burner phone and a website with a menu and photos.

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Europe Has Become the Travel's Largest Regional Online Travel Market 

Europe Has Become the Travel's Largest Regional Online Travel Market  | Hotel Marketing & Revenue Strategies | Scoop.it
It's been an incredible growth story: the rise of Europe as a very second fiddle to the United States in the evolution of online travel. What started as a laggard at the beginning of this century has now emerged to be travel's largest regional online travel market.
Francesco Canzoniere's insight:

With online penetration surpassing half of all travel purchased in 2017, digital channels account for a larger share of the European total travel market than any other region.

The European traveler – and the region's travel industry – may have been initially slow to adopt online booking. But they quickly caught up, and certain dynamics of the European travel industry – such as the growth of low-cost carriers and the very fragmented hotel landscape – has created openings for online travel agencies (OTAs) and other aggregators.

The key question now is: What lies ahead for online travel in Europe? As online penetration grows, growth also slows. Online booking growth has already been slowing for OTAs and airline and hotel websites. 

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TripAdvisor Hotel Sponsored Positions Can Drive Hotel Distribution Costs Further Up 

TripAdvisor Hotel Sponsored Positions Can Drive Hotel Distribution Costs Further Up  | Hotel Marketing & Revenue Strategies | Scoop.it
TripAdvisor just rolled out new sponsored positions. What does this mean for hotels? Is this right for your property? Find out in our comprehensive guide.
Francesco Canzoniere's insight:

TripAdvisor has rolled out the entirely new Sponsored Positions for hotels in December 2017.  This is the first opportunity for hotels to actually bid on the position of their hotel on the Tripadvisor destination page

 

Cons:

  • Hotels are not able to set bids, unlike a traditional PPC campaign. Rather, they are only able to choose between three budget levels per day.  For now, it is a very simple platform with minimum options and zero tools for optimization.
  • If not used correctly, it can be a very expensive way to drive guests to book with OTAs.
  • It is also not a replacement for your existing TripAdvisor campaigns.

Pro:

  • If used correctly, it appears to be a very effective way of putting an otherwise unknown property onto the customers’ radar.
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Whilst Hotels Get Back a bit of Online Market Share from OTAs in Europe, Airbnb and Others To Steal More Hotel Bookings 

Whilst Hotels Get Back a bit of Online Market Share from OTAs in Europe, Airbnb and Others To Steal More Hotel Bookings  | Hotel Marketing & Revenue Strategies | Scoop.it
In Europe's biggest travel segment, the battle for bookings between suppliers and OTAs is heating up. With nearly €100 billion in total gross hotel bookings projected for 2017, there's a lot at stake.
Francesco Canzoniere's insight:

In Europe's biggest travel segment, the battle for bookings between suppliers and OTAs is heating up. Despite OTAs' dominance online, several factors suggest some movement in favour of direct bookings in Europe.

BUT The traditional hotel category in Europe is under considerable pressure from Airbnb, HomeAway and a host of regional private accommodation services, each vying for a larger share of the broader accommodations market. These services – once considered alternative, but now very much mainstream – have emerged as a competitive threat to hotels, and most European hotel stayers now at least consider private accommodations before making their booking decisions. In several European markets, the hotel industry is claiming unfair competition and advocating for stricter limits on private accommodations.

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Google Hotels Ads Could Make Gains With Chain Loyalty Rates

Google Hotels Ads Could Make Gains With Chain Loyalty Rates | Hotel Marketing & Revenue Strategies | Scoop.it
As we highlighted in our most recent Research Report, A Deep Dive Into the Google Travel Ecosystem 2018, the terms of rate parity agreements between hotels
Francesco Canzoniere's insight:

The big chains now offer special book-direct deals through Google Hotel Ads. This helps with click-through and conversions, but also with new loyalty member acquisition — everything a growing hotel chain needs in an ad partner.

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