Travel Marketing Tools for Travel Suppliers
(hotels & tourism operators)
Marketing tools for travel marketing and management range from a simple booking engine to managing content on multinational sites and on numerous Internet travel portals and marketing channels. They also include property management systems relating to managing inventory and reservations.
To optimize an Internet marketing campaign, hotels and tourism operators need to deploy multiple strategies such as Search Engine Optimization (SEO), Pay Per Click (PPC) advertising, Brand advertising (Impression), Direct e-mail marketing (such as iContact) and a spectrum of e-commerce and rates management across channels such as Global Distribution Systems(GDS), Internet Distribution Systems (IDS), Social Media Channels (Facebook, Twitter, etc.), Affiliate Programs, Travel Agents and Tour Operators.
Managing allocation in all channels has become a major problem for travel suppliers (hotels and tourism operators). It is so complex that many hotels and tourism operators opt out and prefer to contract their entire inventory with prime wholesalers and distributors.
The opt-out strategy is a quick fix, but it is not sustainable in the new order. All too often, these dependencies result in huge loss of market when things go wrong. A hotel I know lost its entire distribution when its sole contractor asked for conditions it could not meet. They took their business elsewhere and bookings of 100 rooms per night were gone. It is imperative that hotels and tourism operators build a balanced strategy and take more control of their own brand and marketing.
A wide array of tools, technology and marketing options exists for tourism operators. Channel management systems such as EZYield, rates management with RateGain, Global Distribution via many GDS integration companies and hundreds of Internet Distribution Systems (IDS) like Travelocity, as well a thousand Destination Travel Portals and Travel Guides.
At AXSES, we have developed a marketing suite for small and mid-sized hotels and tourism operators. This was built on our travel booking engine, arcRes Bookings-Expert.com. The Booking Engine has been vastly expanded to do much more, and it is now a Travel Marketing Suite; an e-commerce platform that works for Social Media and conventional travel channels. See http://www.arcres.com/ecommerce-and-travel-marketing suites
Many hotels have opted to jump on the GDS bandwagon and mistakenly concluded that they are now well represented on thousands of IDS channels, such as Travelocity. Wishful thinking! It was true, at one time, but IDS are opting for direct contracts with hotels – Expedia has signed up nearly 100,000 hotels to its Expedia Special Rates (ESP) program and GDS content is far down the line in priority. That is unfortunate for the hotels, as they must now manage Expedia, Travelocity and all the major distribution contracts that they choose.
Optimising distribution channels requires diligence. To be on the top of the IDS ‘by price’ list, you have to offer the best rate. But it is not always desirable to be at the very top! You need to be high on the list for hotels in your own class and offer a value added service rather that the best price. That way, your ROI and Brand is protected. There are e-commerce companies and consultants that specialize in running IDS campaigns. They arrange the contracts and manage them for you.
The travel industry is working to integrate the marketing channels and you can purchase channel management software. Generally, this software is not easy to use and is too expensive for a small hotel. An industry standard that would ease the management of channels is not imminent.
The GDS representative companies who have built Central Reservation Systems (CRS) that interface hotels to the GDS systems ( Sabre, Amadeus, Travelport and Pegasus) >, are also building systems to help hotels manage many IDS channels (Expedia, etc.) from the same CRS. For example, Genares has integrated their CRS with Expedia/TravelWeb (Expedia Quick Connect). This allows hotels to manage Expedia and TravelWeb rates and allocation using the Genares CRS and saves having to learn another online system. The cost is $4 US per booking. For Orbitz, Travelocity, Priceline and others the fee is $4 plus the GDS fees. The IDS will generally require a minimum of 25% discount from your rack rate. Using the GDS as a channel manager thus will cost anywhere from $4 to $10 per booking in addition to the channel cost (25% minimum). It’s not a lot, if you consider the time it takes to learn all the different systems.
arcRes Travel Bookings for Facebook (arcResBookings) is the first-of-its-kind travel bookings application. It allows any hotel to load rates, property information, room descriptions, photos and rates directly from arcRes into Facebook and manage it from arcRes. It is a huge time saver and makes managing Facebook very easy. Both the booking engine and quotation system are embedded in Facebook, so that guests can easily book directly with the property or tourism operator, or get an immediate quote. See Facebook Travel Bookings (Live example)
ArcResBooking.com for Facebook is a part of the arcRes Marketing Suites, a comprehensive e-commerce platform for travel. It is currently the easiest GDS setup in the industry. Contracts are signed online, and the hotel's information, rates and seasons are all loaded directly from information already in arcRes.
As more and better tools for travel marketing become available, the role of the hotel marketer is becoming more technology-driven. Hotels need to invest in hiring the right people and training staff to understand and be comfortable with technology. It cannot be avoided! It is essential to success in the long term.
Thursday, 7 May 2009
Thursday, 2 April 2009
New Order
The New Order of the Web
The web is becoming a platform for participation, rather than a medium for delivery. It is a paradigm shift in thinking, communications, connection, engagement and expression. It seems to have a life of its own as it morphs into a new order, changing how we work, engage and communicate.
The first generation of the Internet was about delivering information. In that arena, a cohesive focus became how to organize and search for information. Search became the driving force of the Internet. Soon, web applications expanded to include information processing, with applications like e-commerce and travel bookings. Later came expert systems, where smart processes analysed behavior and delivered tailored results (see htp://RealHolidays.com). Information became packaged with process to create knowledge services.
I wrote some time ago about ‘search at a crossroads’. That crossroads is here now. Searching is no longer just about finding content. It is about information, its source and its relationship to your own personal network. It is about knowledge.
The new crossroads is the evolution of the Internet. Unlike the previous incarnations, it is not here by grand design, but by evolution itself. The web has morphed into a huge ‘small world network’, connecting services, applications, people, places, ideas and knowledge in unforeseen ways. Adam Smith once spoke about “the invisible hand that guides the market.” The Internet’s invisible hand is evolution, not the balance of demand and supply.
Peter Hershberg, Managing Partner of Reprise Media, points out that YouTube, Twitter and Facebook all started out with simple objectives and have evolved to something much more:
“YouTube started as a service that allowed people to post videos, but has since become the de facto place people turn to when they want to find video content on any subject imaginable. Twitter started as a way to issue personal status updates to your friends, but is morphing into a search engine that allows you to tap into the ‘now’ - what's going on now? What's the groundswell of sentiment around a topic? Facebook began as a way to see more information about people you were going to school with. Now, it's become a way for friends to share interests by becoming Fans of brands and lifestyles and posting articles, opinions and information”.
This evolution has created a network, never conceived and still not defined. It is a work in progress. But it is clear that form, function, process and context have changed and all parts are merging almost at the speed of thought.
Web design and marketing, once about ensuring that people could find your website, is now also about your website finding people. It’s about reaching out to people where they already are, i.e., participating in a personal social network. It’s about adding value by interacting with these networks of people in a meaningful way.
There are over 400,000 independent developers building Facebook applications to harness this. One is Oodle, who helped Facebook with their marketplace classified ads application. I used it recently to list my house for rent and within a week I could have rented it twice.
In another example – I used a knowledge service, to find the professional help we needed. It was a database of Internet professionals classified by skills and experience. There are users’ reviews and ratings of services and skills to help you select the right person or team. But I wanted to know more about the person behind the professional. The system did not help me with that, so I turned to Facebook and LinkedIn to see who their friends were and what they liked. I don’t think Facebook founder, Mark Zuckerberg, ever thought of that use originally. We still don’t know how it might be used in the future.
At AXSES, we have built our arcRes.com Travel Platform into a Facebook application. It allows arcRes users to publish specials as well as rates and web content to Facebook. All this information on Facebook, as well as the ability to get holiday quotes and to book, is managed from the arcRes admin system, which also manages information on the user’s website and a network of other marketing channels. Facebook is a different type of channel – one where meaningful participation and shared knowledge is the driving force.
Knowledge is an evolutionary force. It evolves personally and socially at community, global and spiritual levels. When Ford built the first car in America, German engineers were separately developing a similar invention. The world of knowledge evolves as we do. Along with it, the knowledge highway, media, publishing, communications and marketing are changing.
See the man who developed the web (Sir Tim Berners-Lee) talk about this http://www.ted.com/talks/view/id/484
Our resources of who uses what and how on Social Media: see
http://arcres.com/Social-media-travel-marketing.cfm
Jeff Besos (Amazon), a really fun and very useful analogy of the internet.
The web is becoming a platform for participation, rather than a medium for delivery. It is a paradigm shift in thinking, communications, connection, engagement and expression. It seems to have a life of its own as it morphs into a new order, changing how we work, engage and communicate.
The first generation of the Internet was about delivering information. In that arena, a cohesive focus became how to organize and search for information. Search became the driving force of the Internet. Soon, web applications expanded to include information processing, with applications like e-commerce and travel bookings. Later came expert systems, where smart processes analysed behavior and delivered tailored results (see htp://RealHolidays.com). Information became packaged with process to create knowledge services.
I wrote some time ago about ‘search at a crossroads’. That crossroads is here now. Searching is no longer just about finding content. It is about information, its source and its relationship to your own personal network. It is about knowledge.
The new crossroads is the evolution of the Internet. Unlike the previous incarnations, it is not here by grand design, but by evolution itself. The web has morphed into a huge ‘small world network’, connecting services, applications, people, places, ideas and knowledge in unforeseen ways. Adam Smith once spoke about “the invisible hand that guides the market.” The Internet’s invisible hand is evolution, not the balance of demand and supply.
Peter Hershberg, Managing Partner of Reprise Media, points out that YouTube, Twitter and Facebook all started out with simple objectives and have evolved to something much more:
“YouTube started as a service that allowed people to post videos, but has since become the de facto place people turn to when they want to find video content on any subject imaginable. Twitter started as a way to issue personal status updates to your friends, but is morphing into a search engine that allows you to tap into the ‘now’ - what's going on now? What's the groundswell of sentiment around a topic? Facebook began as a way to see more information about people you were going to school with. Now, it's become a way for friends to share interests by becoming Fans of brands and lifestyles and posting articles, opinions and information”.
This evolution has created a network, never conceived and still not defined. It is a work in progress. But it is clear that form, function, process and context have changed and all parts are merging almost at the speed of thought.
Web design and marketing, once about ensuring that people could find your website, is now also about your website finding people. It’s about reaching out to people where they already are, i.e., participating in a personal social network. It’s about adding value by interacting with these networks of people in a meaningful way.
There are over 400,000 independent developers building Facebook applications to harness this. One is Oodle, who helped Facebook with their marketplace classified ads application. I used it recently to list my house for rent and within a week I could have rented it twice.
In another example – I used a knowledge service, to find the professional help we needed. It was a database of Internet professionals classified by skills and experience. There are users’ reviews and ratings of services and skills to help you select the right person or team. But I wanted to know more about the person behind the professional. The system did not help me with that, so I turned to Facebook and LinkedIn to see who their friends were and what they liked. I don’t think Facebook founder, Mark Zuckerberg, ever thought of that use originally. We still don’t know how it might be used in the future.
At AXSES, we have built our arcRes.com Travel Platform into a Facebook application. It allows arcRes users to publish specials as well as rates and web content to Facebook. All this information on Facebook, as well as the ability to get holiday quotes and to book, is managed from the arcRes admin system, which also manages information on the user’s website and a network of other marketing channels. Facebook is a different type of channel – one where meaningful participation and shared knowledge is the driving force.
Knowledge is an evolutionary force. It evolves personally and socially at community, global and spiritual levels. When Ford built the first car in America, German engineers were separately developing a similar invention. The world of knowledge evolves as we do. Along with it, the knowledge highway, media, publishing, communications and marketing are changing.
See the man who developed the web (Sir Tim Berners-Lee) talk about this http://www.ted.com/talks/view/id/484
Our resources of who uses what and how on Social Media: see
http://arcres.com/Social-media-travel-marketing.cfm
Jeff Besos (Amazon), a really fun and very useful analogy of the internet.
Monday, 2 March 2009
At a Crossroads
We wrote about Advertising at a Crossroads nearly a year ago, today we read about Expedia's new PassportAds, the first program of its kind in travel advertising.
We wrote about Search At a Crossroads, and now TripAdvisor (actually another Expedia company) launches Integrated Search.
It's to be expected - the whole way we do business is shifting fundamentally. Like Philip C. Wolf, President and CEO, PhoCusWright Inc., says, it's a perfect storm:
“Each element in the search-shop-buy triumvirate is undergoing a period of intense innovation, making each increasingly significant, yet interdependent. In fact, searching, shopping and buying – once distinct terms describing different behaviors – are blurring at a furious pace”.
Our Bookable-Ads.com was launched late in 2008; it's almost old hat now and we wonder why it took so long. But the change is just beginning.
The most pervasive change is happening now and it's going to change the entire web and all that we do. Wolf was only half right; it's not about advertising and searching and buying only; equally important is the merging of publishing and communication with what we call the Social Web.
Social Web is just a new word for communications and networking. It started with teenagers, got noted by adults and is moving full steam into the mainstream.
Wolf should have added that publishing and conversation are merging, and that is going to throw the monkey wrench into the media!
We wrote about Search At a Crossroads, and now TripAdvisor (actually another Expedia company) launches Integrated Search.
It's to be expected - the whole way we do business is shifting fundamentally. Like Philip C. Wolf, President and CEO, PhoCusWright Inc., says, it's a perfect storm:
“Each element in the search-shop-buy triumvirate is undergoing a period of intense innovation, making each increasingly significant, yet interdependent. In fact, searching, shopping and buying – once distinct terms describing different behaviors – are blurring at a furious pace”.
Our Bookable-Ads.com was launched late in 2008; it's almost old hat now and we wonder why it took so long. But the change is just beginning.
The most pervasive change is happening now and it's going to change the entire web and all that we do. Wolf was only half right; it's not about advertising and searching and buying only; equally important is the merging of publishing and communication with what we call the Social Web.
Social Web is just a new word for communications and networking. It started with teenagers, got noted by adults and is moving full steam into the mainstream.
Wolf should have added that publishing and conversation are merging, and that is going to throw the monkey wrench into the media!
Monday, 2 February 2009
Social Net
A Social Net Primer - how to use Facebook in your travel business
Obama has 5 million support Friends on Facebook - it helps him get his message out and stay in contact. Spurred on by his successful use of social media, more and more businesses are using, or wondering how to use Facebook and similar social sites.
In December 2008, AXSES began a project to use and evaluate the technology and the network. In the first week of this exercise, Kathy-Lynn Ward became a fan of Jennifer Figge, who is attempting to be the first woman to swim the Atlantic, from Africa to Barbados. Jennifer's manager contacted us through Facebook and AXSES put him in contact with the Barbados Tourism Authority (BTA). The BTA launched a similar Facebook project shortly after.
So we have to say it has value from a business perspective for tourism. It's hard to get to grips on just how to optimize it in a positive and socially acceptable way.
But we are beginning to see that the network and the technology can be a significant resource. The key is to shift thinking from a marketing perspective to one of helping and sharing. It's a good shift, and one that many companies are practicing without being on the Social Net.
Here is how it works: You sign up and then go about inviting Friends, who invite Friends, who invite more Friends to become your Friend. The Friends can become advocates and clients. Start using it, but be warned, it is addictive!
The first thing to learn is that if you want to be successful, don't choose your friends - just accept all that apply, that way it will grow. I don't do that well - I like my privacy, so I am careful who I approve.
Next, learn to create pages to describe, in pictures and words, your company and/or some of your products. Post it to your profile so it is visible to all that check to see who you are.
At AXSES, we created pages for the Barbados Tourism Encyclopedia (BTE) (http://Barbados.org),
http://BookingsBarbados.com, http://BookingsStLucia.com and http://BarbadosBoardwalk.com as a photo gallery, to name a few.
I say we did this, meaning that our people did. Facebook is personal, so a real person, not a company, is expected to create a Facebook account. They may then add pages, photo galleries, groups and make comments which can be sent to others. Facebook pages can be about companies and products. In fact, we made the mistake of setting up a profile for the BTE page and, in fact, there are advantages (more detailes to follow). It seems many companies also made this mistake! But for visibility on access, a page is superior; a profile is private and will not be picked up by SEO, whereas pages may.
Facebook groups may be formed to discuss topics of interest and share news and happenings. They are a good way to network and keep up to date and in contact. It's similar in a way to the thing they call a Wall, where all can post messages to be read by others who look at your Wall. Sort of like graffiti. Groups are more focused and you can create multiple topics. In the St. Lucia group, there are discussions going on about Amy Winehoue, as well as the new St. Lucia Marketing strategy. Unlike Pages groups, they are not open to the public; they are only accessible to Facebook people and you have to belong to the group to participate.
Margaux Daher, an AXSES Associate from St. Lucia, has taken the lead in creating links and sharing insights on the St. Lucia page and the St. Lucia group we created. Her friends have joined the group and now others are joining. It's not generating business but it is away to communicate and share.
Kathy-Lynn, always thinking of our hotel and travel clients, established RSS feeds which grab Holiday Specials off our bookings services and display them on the respective Facebook pages. Anyone who looks at the page can see a Special on offer.
Facebook's pages, photos, videos, events, invitations, discussion boards, Walls and messaging, as well as Flash and numerous applications, give us a very rich platform for a travel dialogue and e-commerce. It has potential for hotels and tourism operators.
We have already deployed arcRes Booking Engine on Facebook. Our next step is to integrate clients information on Facebook, to link in our travel network with special applications built on our travel platform.
4 million people use http://Barbados.org each year. If they choose to become a Friend or Fan of our Facebook page for Barbados, they will see all the Barbados.org posts, news and specials, all in one place. It will give us a useful way to communicate with travelers in a social way, on their terms, and with not in-your-face advertising.
Our next step will be to investigate how best to help hotels use social networks (more later).
According to eMarketer research, Social network users made up 41.2% of the US Internet population in 2008. 60% of Internet users are consumers of all user-generated content.
eMarketer estimates that 115 million people use the social media.
By 2013, the total number is expected to be over 154 million.
It's growing because its easy to use, appears to be more credible and it's free!
(Credit: Compete.com)
Resources:
see Jason Falls on FacebookBrand Page Best Practices/
Facebook Population
The Rush to Social Networks
Obama has 5 million support Friends on Facebook - it helps him get his message out and stay in contact. Spurred on by his successful use of social media, more and more businesses are using, or wondering how to use Facebook and similar social sites.
In December 2008, AXSES began a project to use and evaluate the technology and the network. In the first week of this exercise, Kathy-Lynn Ward became a fan of Jennifer Figge, who is attempting to be the first woman to swim the Atlantic, from Africa to Barbados. Jennifer's manager contacted us through Facebook and AXSES put him in contact with the Barbados Tourism Authority (BTA). The BTA launched a similar Facebook project shortly after.
So we have to say it has value from a business perspective for tourism. It's hard to get to grips on just how to optimize it in a positive and socially acceptable way.
But we are beginning to see that the network and the technology can be a significant resource. The key is to shift thinking from a marketing perspective to one of helping and sharing. It's a good shift, and one that many companies are practicing without being on the Social Net.
Here is how it works: You sign up and then go about inviting Friends, who invite Friends, who invite more Friends to become your Friend. The Friends can become advocates and clients. Start using it, but be warned, it is addictive!
The first thing to learn is that if you want to be successful, don't choose your friends - just accept all that apply, that way it will grow. I don't do that well - I like my privacy, so I am careful who I approve.
Next, learn to create pages to describe, in pictures and words, your company and/or some of your products. Post it to your profile so it is visible to all that check to see who you are.
At AXSES, we created pages for the Barbados Tourism Encyclopedia (BTE) (http://Barbados.org),
http://BookingsBarbados.com, http://BookingsStLucia.com and http://BarbadosBoardwalk.com as a photo gallery, to name a few.
I say we did this, meaning that our people did. Facebook is personal, so a real person, not a company, is expected to create a Facebook account. They may then add pages, photo galleries, groups and make comments which can be sent to others. Facebook pages can be about companies and products. In fact, we made the mistake of setting up a profile for the BTE page and, in fact, there are advantages (more detailes to follow). It seems many companies also made this mistake! But for visibility on access, a page is superior; a profile is private and will not be picked up by SEO, whereas pages may.
Facebook groups may be formed to discuss topics of interest and share news and happenings. They are a good way to network and keep up to date and in contact. It's similar in a way to the thing they call a Wall, where all can post messages to be read by others who look at your Wall. Sort of like graffiti. Groups are more focused and you can create multiple topics. In the St. Lucia group, there are discussions going on about Amy Winehoue, as well as the new St. Lucia Marketing strategy. Unlike Pages groups, they are not open to the public; they are only accessible to Facebook people and you have to belong to the group to participate.
Margaux Daher, an AXSES Associate from St. Lucia, has taken the lead in creating links and sharing insights on the St. Lucia page and the St. Lucia group we created. Her friends have joined the group and now others are joining. It's not generating business but it is away to communicate and share.
Kathy-Lynn, always thinking of our hotel and travel clients, established RSS feeds which grab Holiday Specials off our bookings services and display them on the respective Facebook pages. Anyone who looks at the page can see a Special on offer.
Facebook's pages, photos, videos, events, invitations, discussion boards, Walls and messaging, as well as Flash and numerous applications, give us a very rich platform for a travel dialogue and e-commerce. It has potential for hotels and tourism operators.
We have already deployed arcRes Booking Engine on Facebook. Our next step is to integrate clients information on Facebook, to link in our travel network with special applications built on our travel platform.
4 million people use http://Barbados.org each year. If they choose to become a Friend or Fan of our Facebook page for Barbados, they will see all the Barbados.org posts, news and specials, all in one place. It will give us a useful way to communicate with travelers in a social way, on their terms, and with not in-your-face advertising.
Our next step will be to investigate how best to help hotels use social networks (more later).
According to eMarketer research, Social network users made up 41.2% of the US Internet population in 2008. 60% of Internet users are consumers of all user-generated content.
eMarketer estimates that 115 million people use the social media.
By 2013, the total number is expected to be over 154 million.
It's growing because its easy to use, appears to be more credible and it's free!
(Credit: Compete.com)Resources:
see Jason Falls on FacebookBrand Page Best Practices/
Facebook Population
The Rush to Social Networks
Thursday, 29 January 2009
BookDirect
Travel rants has a good article on the trade offs on using different channels to book travel. see Direct Bookings
Travelers have moved dramatically to direct bookings over that last few years. The split is now slightly in favour of direct bookings and seems to be stabilising there.
see a full discussion on this at hostipality biusiness (merrill lynch survey)
The main reasons:
They deal with the owners and host of the place they will stay.
They get to know them and
more importantly they get to be known.
Dealing direct means they have better control of the itinerary, its easier to change dates and get upgrades etc. Its easier to correspond - to ask questions about the destination, activities and things to be wary of, and it from the horses mouth - so to speak.
it sued to be that middlemen had the edge on package holidays - but no so now. With hotel tools, travelers can actually create a vacation package on sites like http://realholidays.com and still deal direct with the hotel. These same tools are being used on hotel website to allow users to add activities and air to their package.
Travel tools used by destinations and tourism sites such as; hotels and activities are making it easier for us travelers to get what we want and how we want it.
Travelers have moved dramatically to direct bookings over that last few years. The split is now slightly in favour of direct bookings and seems to be stabilising there.
see a full discussion on this at hostipality biusiness (merrill lynch survey)
The main reasons:
They deal with the owners and host of the place they will stay.
They get to know them and
more importantly they get to be known.
Dealing direct means they have better control of the itinerary, its easier to change dates and get upgrades etc. Its easier to correspond - to ask questions about the destination, activities and things to be wary of, and it from the horses mouth - so to speak.
it sued to be that middlemen had the edge on package holidays - but no so now. With hotel tools, travelers can actually create a vacation package on sites like http://realholidays.com and still deal direct with the hotel. These same tools are being used on hotel website to allow users to add activities and air to their package.
Travel tools used by destinations and tourism sites such as; hotels and activities are making it easier for us travelers to get what we want and how we want it.
Tuesday, 28 October 2008
Distribution
Travel Distribution at a Crossroads
59% of online travel shoppers stop at online agents, like Travelocity, first, presumably to comparison shop. The average consumer makes 12 searches and visits 22 sites before they book (Uptake, June, 2008). To be found, you need to be seen on “appropriate” sites, even if you don’t get bookings from them. 95% of visitors to these sites do not buy on the site. In 2006, it was estimated that 70% of visitors to sites, like Expedia, ended up buying Direct from the supplier. This is why Expedia has moved into advertising, realizing that they do influence buying decisions at a growing rate. The GDS imposed minimum monthly billings as a way of charging for exposure.
In a fragmented global market, distributors emerged as the place to shop, and hotels have fully supported this channel. But distributors set their own rules and resell price. Prices in distribution are often much lower that the hotel-published rates. As competing distributors try to match rates, the pressure on hotel profitability is intense. Often, a hotel that could not meet a requested price would be dropped. In this aggressive distribution-driven market, the hotel Brand was eroded and rates fragmented.
The large hotel chains moved effectively to take back control with Best Rate Guarantees and by offering consumers the service (technology) they demanded (online costing, bookings, packaging).
Many travelers prefer to deal direct (i) and the technology is helping to drive more business direct to suppliers. Field Management Systems and small travel application developers and travel integrators, such as AXSES, play a large part in driving direct to supplier business.
Consider Intimate Hotels of Barbados. The Intimate portal is powered by AXSES arcRes Portal-keeper.com and arcRes-CRS (Central Reservations Systems). These solutions can be fully integrated with GDS, with the hotel bookings and Property Management System.
In this scenario, the small hotels manage rates and inventory on their own arcRes web booking engine, the Intimate Hotels Barbados Portal and 10 arcRes-powered channels, like BoookingsBarbados.com, BarbadosVacationSpecials.com, etc.
Global Distribution Systems (GDS) are an important part of the market mix and are now affordable for small hotels. GDS is the largest travel distribution network in the world. Over 600,000 international travel agents use them. In addition, many Internet Distribution Systems (IDS), such as Travelocity, have traditionally pulled content from the GDS to offer booking for resorts not signed with them.
The GDS have acted, to some extent, as a channel management tool for thousands of IDS sites. This, too, is changing, as IDS favour direct contracts with resorts and always put their own direct contracts on top of the list. We expect that IDS will drop GDS content when they have a critical mass of direct-contract suppliers.
The issue, then, is how many systems will you, as supplier, be required to manage.
Distribution is here to stay. It offers services, like comparison-shopping, that cannot be feasibly offered by a resort website. Travelers will continue to comparison-shop there to assess which supplier sites to visit.
The role of marketing is becoming very much the role of controlling content, rates, availability and visibility on the Internet (Channel Management).
Channel Management is a top priority of just about everyone in the travel marketing business. The technology is becoming affordable and easier to use. GDS suppliers are now rolling out integrated solutions to let hotels manage rates on other channels. Companies, like Rate Tiger, are reaching a critical mass and lowering their rates.
The new order is taking shape. New technology is driving direct business and making it easier to control and manage distribution. Technology is more accessible and affordable and Suppliers who use it are taking control.
Notes
1. PhoCusWright: "In fact, more than twice as many online travelers (36%) believe that the supplier-direct channel provides the best customer service, compared to 15% who choose the online travel agency channel. Even offline agencies, which are coveted for their personal touch in a technology-driven world, did not fare as well, with 33% claiming they provide the best customer service ...."
more>>>
59% of online travel shoppers stop at online agents, like Travelocity, first, presumably to comparison shop. The average consumer makes 12 searches and visits 22 sites before they book (Uptake, June, 2008). To be found, you need to be seen on “appropriate” sites, even if you don’t get bookings from them. 95% of visitors to these sites do not buy on the site. In 2006, it was estimated that 70% of visitors to sites, like Expedia, ended up buying Direct from the supplier. This is why Expedia has moved into advertising, realizing that they do influence buying decisions at a growing rate. The GDS imposed minimum monthly billings as a way of charging for exposure.
In a fragmented global market, distributors emerged as the place to shop, and hotels have fully supported this channel. But distributors set their own rules and resell price. Prices in distribution are often much lower that the hotel-published rates. As competing distributors try to match rates, the pressure on hotel profitability is intense. Often, a hotel that could not meet a requested price would be dropped. In this aggressive distribution-driven market, the hotel Brand was eroded and rates fragmented.
The large hotel chains moved effectively to take back control with Best Rate Guarantees and by offering consumers the service (technology) they demanded (online costing, bookings, packaging).
Many travelers prefer to deal direct (i) and the technology is helping to drive more business direct to suppliers. Field Management Systems and small travel application developers and travel integrators, such as AXSES, play a large part in driving direct to supplier business.
Consider Intimate Hotels of Barbados. The Intimate portal is powered by AXSES arcRes Portal-keeper.com and arcRes-CRS (Central Reservations Systems). These solutions can be fully integrated with GDS, with the hotel bookings and Property Management System.
In this scenario, the small hotels manage rates and inventory on their own arcRes web booking engine, the Intimate Hotels Barbados Portal and 10 arcRes-powered channels, like BoookingsBarbados.com, BarbadosVacationSpecials.com, etc.
Global Distribution Systems (GDS) are an important part of the market mix and are now affordable for small hotels. GDS is the largest travel distribution network in the world. Over 600,000 international travel agents use them. In addition, many Internet Distribution Systems (IDS), such as Travelocity, have traditionally pulled content from the GDS to offer booking for resorts not signed with them.
The GDS have acted, to some extent, as a channel management tool for thousands of IDS sites. This, too, is changing, as IDS favour direct contracts with resorts and always put their own direct contracts on top of the list. We expect that IDS will drop GDS content when they have a critical mass of direct-contract suppliers.
The issue, then, is how many systems will you, as supplier, be required to manage.
Distribution is here to stay. It offers services, like comparison-shopping, that cannot be feasibly offered by a resort website. Travelers will continue to comparison-shop there to assess which supplier sites to visit.
The role of marketing is becoming very much the role of controlling content, rates, availability and visibility on the Internet (Channel Management).
Channel Management is a top priority of just about everyone in the travel marketing business. The technology is becoming affordable and easier to use. GDS suppliers are now rolling out integrated solutions to let hotels manage rates on other channels. Companies, like Rate Tiger, are reaching a critical mass and lowering their rates.
The new order is taking shape. New technology is driving direct business and making it easier to control and manage distribution. Technology is more accessible and affordable and Suppliers who use it are taking control.
Notes
1. PhoCusWright: "In fact, more than twice as many online travelers (36%) believe that the supplier-direct channel provides the best customer service, compared to 15% who choose the online travel agency channel. Even offline agencies, which are coveted for their personal touch in a technology-driven world, did not fare as well, with 33% claiming they provide the best customer service ...."
more>>>
Friday, 24 October 2008
Destination Marketing
Destination Marketing at a Crossroads
Not so very long ago a traveler had few options and the world of travel was pretty straightforward and perhaps a little too expensive।
Travelers went to their neigbourhood agent and pored over brochures, got advice and booked with the agent. Agents got to know the traveler well and could recommend vacations that suited. Travelers were well served, although the service was not necessarily timely or convenient.
Today the traveler is overwhelmed with armchair choices. Travelers who still go to agents often will first research on-line, and more and more of them are booking on-line. Arm-chair booking a holiday can be a tedious and time-consuming process. Travelers will look at several sites, consult friends and agents, read reviews on social sites, check airlines and look for the best value. Back and forth, they go looking at maybe a dozen sites.
Most people begin their holiday research by searching for destination guides (typically through Google). Often, they end up on Destination sites such as Tourism Authority sites, where the information is general, helpful but often limited in its ability to offer real in-depth comparison, shopping and planning services. The destination sites are often great for finding official resort websites, but the resort websites don’t present information in a consistent form and they are hard to compare.
Travelers move on to shopping sites like Expedia to compare resorts, to Trip Advisor to read reviews and to other sites to get more information and find deals. In the process they have a confusing and muddled array of information. The sites that help them most stick. The sites that don’t stick fall off the radar.
In the end the traveler will narrow down options to the few sites that help them most, the ones that give the best information and the best deals. They will narrow down the options to a few preferred resorts (unless it is an opaque site) and many will want to review the resort website, if they can find it. The traveler soon learns that it is impossible to get back to the actual resort because the shopping sites like Expedia, are a closed loop. All too often a search for a particular resort links them back to a shopping site. The big online portals have the budget and the knowhow to get listed on the Internet search engines (SEO); small hotels often don’t.
Destination sites are often the best place to find links to the official website of selected resorts, so the “clicked out traveler” may come back to the destination sites in the last stages of the decision making process. Many travelers prefer to book direct and most like to see the resort website. Convenience, value, service and after sales support drive the decision of where to buy, but all to often the hotel website is not convenient, does not offer the best value and can be difficult to find.
This buy cycle is not well documented, but it is intuitively understood. Its implications for travel websites are important.
The buying cycle and its implication for the destination supplier website
The Destination site is a pivotal point, Shoppers often use it first and may return to link to the resort that they have subsequently selected. The questions we ask are; how can the destination site hold onto that traffic or how do they get people to come back. It is unrealistic to expect the destination site to be the only place travelers go. So the real question therefore is, how do they get them back.
Ultimately the Destination site is the key portal to support direct marketing for the destination suppliers. It must move beyond being a information site to becoming a system to help shoppers plan, compare and book, in harmony with its trade partners.
Not so very long ago a traveler had few options and the world of travel was pretty straightforward and perhaps a little too expensive।
Travelers went to their neigbourhood agent and pored over brochures, got advice and booked with the agent. Agents got to know the traveler well and could recommend vacations that suited. Travelers were well served, although the service was not necessarily timely or convenient.
Today the traveler is overwhelmed with armchair choices. Travelers who still go to agents often will first research on-line, and more and more of them are booking on-line. Arm-chair booking a holiday can be a tedious and time-consuming process. Travelers will look at several sites, consult friends and agents, read reviews on social sites, check airlines and look for the best value. Back and forth, they go looking at maybe a dozen sites.
Most people begin their holiday research by searching for destination guides (typically through Google). Often, they end up on Destination sites such as Tourism Authority sites, where the information is general, helpful but often limited in its ability to offer real in-depth comparison, shopping and planning services. The destination sites are often great for finding official resort websites, but the resort websites don’t present information in a consistent form and they are hard to compare.
Travelers move on to shopping sites like Expedia to compare resorts, to Trip Advisor to read reviews and to other sites to get more information and find deals. In the process they have a confusing and muddled array of information. The sites that help them most stick. The sites that don’t stick fall off the radar.
In the end the traveler will narrow down options to the few sites that help them most, the ones that give the best information and the best deals. They will narrow down the options to a few preferred resorts (unless it is an opaque site) and many will want to review the resort website, if they can find it. The traveler soon learns that it is impossible to get back to the actual resort because the shopping sites like Expedia, are a closed loop. All too often a search for a particular resort links them back to a shopping site. The big online portals have the budget and the knowhow to get listed on the Internet search engines (SEO); small hotels often don’t.
Destination sites are often the best place to find links to the official website of selected resorts, so the “clicked out traveler” may come back to the destination sites in the last stages of the decision making process. Many travelers prefer to book direct and most like to see the resort website. Convenience, value, service and after sales support drive the decision of where to buy, but all to often the hotel website is not convenient, does not offer the best value and can be difficult to find.
This buy cycle is not well documented, but it is intuitively understood. Its implications for travel websites are important.
The buying cycle and its implication for the destination supplier website
The Destination site is a pivotal point, Shoppers often use it first and may return to link to the resort that they have subsequently selected. The questions we ask are; how can the destination site hold onto that traffic or how do they get people to come back. It is unrealistic to expect the destination site to be the only place travelers go. So the real question therefore is, how do they get them back.
Building a compelling reason to return!
1. Provide online shopping
The challenge is in balancing integrity of information with on-line shopping, channel conflict and channel competition. The cost of a good destination site is rising. So operators are moving towards a business model that stresses income generation in an effort to make the site self-sustaining. But this comes at a price of muddling the roles and creating conflict with destination trade partners. Destinations can involve trade partners with affiliate marketing, but it is not always equitable and the question is who are the affiliates and where do tour operators fit. Destinations are reluctant to cut out the tour operator and agent and they don’t for the most part want to be either a travel agent or a tour operator।
2. Offer the tools travelers need.
Destinations can help travelers research by providing expert intelligent systems that learn who the traveler is and configure the experience based on unique requirement. These tools will necessary include offering comparison-shopping. Ideally the result will be to give the traveler the option to choose the channel, including dealing direct with the supplier. Word of mouth reviews and a traveler forum will also help keep them on the site and give the site top-of-mind recall. It is not appropriate for a destination site to link to Trip Advisor and such, as these are shopping channels that will not keep them coming back. Cost conscious travelers are always looking for a deal and the destination needs to offer a list of specials and deals and the ability to sign up for newsletters on specials and deals।
3. Award & create loyalty
Destinations have a great opportunity to reward repeat travelers and cooperate with airlines point systems to encourage them to book a destination hotel
4. Offer travelers their own website itinerary and own planning tools
There are huge opportunities for destinations to lead this charge by providing destination specific planning and a place to return to manage and share a holiday itinerary and the memories। Travelers should be able to build a personal website brochure by adding any page they look at to it. The traveler website should also be a comprehensive personal information resources and planning tool. Travelers may read and add reviews here, see a calendar of activities and events taking place during their holiday, and link to other social media sites and others like Tripit and Traveldk. It may include personalized maps showing the options they are interested, ranking them according to preferred and final selection etc.
Ultimately the Destination site is the key portal to support direct marketing for the destination suppliers. It must move beyond being a information site to becoming a system to help shoppers plan, compare and book, in harmony with its trade partners.
Subscribe to:
Posts (Atom)