WTM London 2015: Three hot trends in global travel industry

WTM London continues to be a crowd-puller and a great networking platform and this year is no different for us. During the four days of the event hundreds of hoteliers, travel technology professionals from all around the world gathered at eRevMax stand TT550 to witness the launch of LIVE OSand I personally got chance to interact with them to discuss more about recent trends in the hospitality industry.
Here I find these are top three trends which are influencing the global travel industry at this moment.
Online Travel Leads the Way
Online travel channels (OTAs) continue to outpace other distribution channels, and the two giants Priceline and Expedia dominating the show by no small margin. According to a PhoCusWright estimate, close to 50% of the total OTA bookings are controlled by them. For Europe, the figure is even more skewed, with the duo controlling over 70% of the market. With smartphones and tablets in nearly every consumer’s hands today, bookings from this  channel is growing faster than any other channel, and currently accounts for 12.5% of overall bookings. By 2017, Euromonitor predicts that more than 30% of online travel bookings by value will be made on mobile devices. The emergence of mobile as a serious channel has also forced the hospitality industry to focus on a seamless experience for travellers as they switch devices on the road to purchase. The OTAs have been frontrunner, and with big hotel chains also joining in, it’s only a matter of time before the personalized marketing strategy becomes the norm for the hospitality industry.
Smart Travel is the new regular

As the travellers’ personal preferences are changing constantly hoteliers are also incorporating new technologies to transform the travel experience of their guests. Hotels are now investing on the big data analytics to identify future trends and changing preferences of customers. Analytics also provide a better sense of direction for the hotels to segment guests according to booking trends, behavior and other factors in order to reveal their likelihood to respond to promotions and emerging travel trends.
The understanding guest preferences, purchase behavior like frequency, length of stay, booking channel and profit potential are critical for hotels to increase the brand loyalty and upsell opportunity of their most valuable guests. Global hotel chains are already experimenting with personalized pricing based on customers’ online activity, preferences and predictive analytics. One of the challenges hotels face today is the dependence of multiple systems which produce own reports. A single platform, offering integrations of all technology solutions, and actionable intelligence based on data is the future. 
CPC to CPA
Hospitality industry is constantly evolving – this year we’ve seen big players have changed their business models. Now the travel giants are shifting from CPC (Cost per click) to CPA (Cost per action) model and this is welcomed by the hotel industry due to its cost effectiveness. Recently, TripAdvisor announced Instant Booking feature – now consumers can book their accommodations right from the TripAdvisor site without leaving the booking window. Google has also followed in the same footsteps of TripAdvisor, killing its metasearch site Google Hotel finder. Earlier last month, the search engine giant launched Google Hotel Ads Commission Program allowing hoteliers to take full control starting from a guest’s search process to the completed booking contrary to the OTAs. As in this new meta-OTA model, hotels only have to pay to Google after a successful booking this will help hoteliers to increase their revenue and lessen dependence on online travel agents.
Global Travel is Booming
Though the economic condition across the globe is uncertain due to rising geopolitical unrest, a potential US interest rate rise, oil price volatility and the Eurozone crisis, growth of travel industry were remain the same. In 2014 international tourist arrivals was 1.1 billion up by 4.3% and by the end of this year the figure will be slightly down. Despite recent economic slowdown travel expenditure is rising, with the Asia Pacific region predicted to see the fastest growth in inbound expenditure over the next five years.
The global hospitality industry has become more competitive in last five years. Organizations which are responding quickly to the technology led opportunities are creating new revenue streams and driving higher profits than ever before.

Image Credit: WTM Trends Report
**With inputs from PhoChusWright & Euro Monitor International

Claudia De Leo is the Sales & Marketing Manager at eRevMax. She can be reached at claudiad@erevmax.com






TTG Rimini: Three trends shaping the travel industry in Italy

The fifteenth edition of TTG Incontri took place at Incoming Hall, Italy. With over 2,400 exhibitors and more than 1,000 top-quality buyers representing 85 countries, the exhibition was a milestone for the travel and hospitality enthusiasts.

TTG Rimini Stats


I attended the event with my colleague Francesca Stagi to establish new contacts and generate new business in Italy. Thousands of hospitality and travel technology professionals from all around the world gathered under one roof to find new partners thus proving to be a meeting place between supply and demand. It was a great opportunity for us to understand new trends in Italian hospitality industry and pitching latest offerings from RateTiger.
Team eRevMax at TTG Rimini

Here are three trends I find the most important that are shaping Italian travel industry.

Influx of Inbound Tourists

Despite the slow economic progress, travel and tourism in Italy has seen a positive growth – thanks to influx of inbound tourists to the country. Italy is the third most popular destination in Europe in terms of tourist arrivals. In 2014, a whopping 48.6 million tourists crossed the borders to travel to the country and this number will only grow bigger this year thanks to a wide range of offers from hoteliers and online travel agents. This has made a positive impact in attracting large numbers of inbound tourists and the potential impact on Italian travel and tourism industry.

Mobile travel matters
While interacting with visitors and industry veterans in the exhibition, the one thing I observed is that the rise of mobile phones is the most prominent force behind the change of travel scenario in Italy. In particular, mobile transaction in travel generated a double digit value in 2014 led by widespread use of smartphones and tablets in Italy. Young and affluent travellers in the country are more comfortable with mobile apps and websites that forced the large number of hotels and online travel agents to use mobile as a channel to reach higher number of consumers.
Oh! Online travel is booming

Last but not the least; online travel agents in Italy are the largest source of revenue generator when we talk about online travel. Booking.com is undoubtedly the king of online travel agents in Italy with 63% market share controlled by the OTA giant. Though three major OTAs (Booking.com, Expedia and HRS) rule the country, emergence of new travel agents in the Italian market and the rise of peer-to-peer services is going to influence the travel scenario in future.

The event was the cornerstone for us to showcase our recent developments in RateTiger products. This was also an opportunity for us to meet new partners and we are excited to start collaborating with them!


Claudia De Leo is the Sales & Marketing Manager at eRevMax. She can be reached at claudiad@erevmax.com.

eRevMax’s LIVE event series prove to be a great platform for London hoteliers

As part of the London Technology Week, the LIVE in London event had all the ingredients of a great networking evening. Well, it turned out to be spectacular and how!

eRevMax and Luxury Hotels Groupjoined forces to bring LIVE in London – an exclusive evening event to top city hoteliers at the five star ball room of The Montcalm London Marble Arch last week on June 18.

With over 150 hoteliers in attendance, the evening witnessed educational sessions covering latest market trends, new distribution techniques and consumer behaviour patterns to understand the world of BIG data and how to leverage actionable intelligence by integrating all systems to be operationally managed from one single dashboard!

The event proved to be one-of-a-kind opportunity to interact and build business relationships with top hoteliers, technology solution providers and distribution channels, all unanimously agreeing to the relevance of integrated platforms in today’s business scenario.

The sessions were followed by great peer-to-peer networking over drinks and canapés. The casino table grabbed its share of attention and people enjoyed playing with fun money. The icing on the cake was the big Prize Draw where lucky winners got to take away some valuable market intelligence reports from STR, complimentary product setup from eRevMax and AVQuest, digital marketing audit and revamp of digital strategy by Luxury Hotels Group and other treats for the summer from other sponsors.

The event closed with a thumping applause and rave reviews. A special thanks to all our partners and presenters for their contribution and for helping make LIVE in London a great evening!

Partners and presenters include Luxury Hotels Group, Duetto, Revinate, STR, AVQuest, HoistLocal, Skyware and SnapShot.



Cristina Blaj is Sales Director at eRevMax.  She can be reached at cristinab@erevmax.com

Trust Customer Conference

Being a Trust Partner, we got invited to the Trust Customer Conference in Amsterdam recently. This year’s event theme was “Blossom your distribution”. It was very well organized and provided a great platform to engage with hoteliers and also showcased the upcoming plans that Trust has for its product range.

The forum was designed mainly to exchange ideas and conduct informative, lively and interactive discussions between the Trust team and its business partners. Speakers were invited from leading companies including Google, TripAdvisor, Kayak, ICEPortal, and Essec Business School and shared key insights on industry issues, business opportunities and market trends.


Our COO Greg Berman was invited to present on the upcoming trends and technologies in Channel Management. It was an interactive session where Greg laid stress on eRevMax’s partnership with Trust Voyager and how it simplifies the distribution process to boost the revenue funnels.

Overall the event was a great chance for me to interact directly with multiple hoteliers, revenue managers as well as sales and marketing heads.
Pilar Sanchez Aita is Director Strategic Account Management at eRevMax. She can be reached at pilars@erevmax.com 

HSMA Pricing & Distribution Day 2014

Marriot Frankfurt witnessed an interesting event last month when the HSMA Pricing & Distribution Day 2014 took place. The forum aimed to inform members about the latest developments, trends and innovations in hotel pricing and distribution.


I was happy with the structure of this full day event as it allowed members to attend sessions that were relevant for them. The day started off with the welcome address by HSMA Germany chief, which was followed by key note session on “The hotel industry explained in five games” by Dr. Christian Rieck, professor of game theory, University of Applied Sciences, Frankfurt. The session went really well as it was quite interactive and engaged the audience effectively.
The rest of the event was neatly segregated into three parallel sessions – Metasearch, Revenue Management and Distribution. Each session had different sub-topics with expert speakers. The highlight of this year’s Pricing & Distribution Day was the panel discussion on the hot topic Meta Search – new opportunity or new threat to the hotel industry. Industry experts from Trivago, KAYAK, TripAdvisor and Google took part in the discussion and shared their insights.
The event provided a great networking platform to meet hotel owners and managers. We received some good reviews about our products and also got the opportunity to showcase some of our new solutions. I look forward to attending more sessions organized by HSMA – many congratulations to HSMA for the successful event.
Alina Wysokowsky is Sales Manager for Germany at eRevMax and is responsible for business development in the region. She can be reached at alinaw@erevmax.com

IHTF 2014

The eleventh edition of the International Hotel Technology Forum (IHTF), took place in Barcelona, Spain in early April this year. The two-day event saw over 600 business meetings with 50 speakers delivering cutting-edge insights into latest trends in the hospitality industry.
John Seaton, VP Sales APAC & EMEA, and Cristina Blaj, Sales Director UK, Ireland & Scandinavia at eRevMax attended the event to network with industry veterans. Cristina participated in a panel discussion on Engaging with the Digital Traveller – The Move to Mobile”. The panel consisted of Monika Nerger from Mandarin Hotels; Jeremy Ward from Kempinski Hotels and Nancy from Jumeirah Hotels. The discussion focused on evaluating the advent of mobile bookings and its trends to capitalise on modern buying patterns. They also emphasised on implementing guest-led trends in hospitality industry as more happy customers equal to more revenue.

 
John Seaton was invited to participate in a panel on Over-coming the Challenges in Diverse Distribution Channels”. He had  Jon Siberry from Sarova Hotels and Lennert de Jong from CitizenM; among others as co-panelists. The speakers examined the current challenges faced by hoteliers in the diverse distribution space and the strategies for better channel performance. They also focused on how to analyze channel performance and how to capture guest data to determine best communication channel for each guests.

Overall the event concluded on a positive note and there was constructive exchange of ideas and experiences.

Boutique Hotel Summit: Post-Olympic debrief


On Monday 3rd September the Boutique Hotel News held a panel discussion to review the effect of the Olympics and the results for Independent and Boutique hotels during the period. Held at The Hempel, the session looked at what can be learned from the London Olympics and what to expect over the next 12 months.

The panel consisted of:
Gareth Banner, General Manager, The Hempel
Marie Baxter, General Manager, Town Hall Hotel
Chris Foy, Head of 2012 games unit, Visit Britain
Ruth Mortimer, Editor, Marketing Week
Moderator: Jonathan Langston, Managing Director, TRI Hospitality Consulting

The overview
The London Olympics 2012 is about the long game; promoting and reintroducing Britain back to the world, building the profile of the country across the world. The panel noted that it drew the best of Britain through the media, that was replicated across the world. The mass number of volunteers demonstrated the country’s hospitality and the ability to be welcoming hosts.

Ruth Mortimer said it is hard to say yet how the legacy will be fulfilled, “however the immediate success can be seen in the interest in the Paralympics.”

For The Hempel, the hotel sold out to a single booking which helped them meet their revenue needs. While Town Hall Hotel experienced good occupancy and ADR, but “in all honesty conferencing and banqueting took a dip – we had no weddings or other entertainments because of so many events were happening with the Olympics.” However Marie Baxter noted that the hotel could continue to get success “off the back of marketers, who will bring more people into London.”

The panel noted how boutique properties are good for hospitality events with the right amount of space (40-60 rooms) that adds character and history of London through the original building structure that feels historically different.

The underlying theme though was to truly understand what the customer wants from you! With thousands of hotel room nights opening in London that have more luxury capacity and as the Olympic spotlight fades hoteliers need to begin being creative rather than taking everything for granted.

Boutique hotels will need to work hard and be very smart and creative otherwise 2013 will be a difficult year. The UK has had its fair share of international events over the past couple of years with few to come except the Rugby World Cup 2014.  


As hotels in the UK will need to market rates inclusive of VAT, at 20%, the country may start to look expensive, especially to Europeans with the low value of the Euro.

#empty13
The panel talked of the year of 2013 that has little to look forward to. More budgeting, people needing to work harder and hotels to find those hidden gems and stories. The industry will need to look closer at the potential of providing a more personalized experience. By 2014 the country is expecting an additional 4.5 million visitors, a commitment made by VisitBritain.

Distribution
For the hotels, OTA is a dirty word as direct sales are more profitable. However OTAs are needed in January, February and Sunday nights. The Town Hall Hotel works with the Kiwi Collection, Mr and Mrs Smith and other very specific boutique brand agencies, doing the marketing on their behalf. Marie said she works hard to qualify whom they work with and there is a growing understanding with consumers that the best rate is a direct rate with the hotel.
For working with the large OTAs like Expedia and Booking, for them it is a listing, to be on the hotel search engine, but keeping an optimum price on these channels positions them correctly in the market.

Ruth talked about how other industries have lost control over their inventory Insurance for example – where everything is done through price comparison websites. “People’s behavior in how they look has altered and what the hotel suffers from when people are just looking at the big number. It is totally rate driven.”

For the hoteliers in the room being a boutique hotel means they can stand above the rest because they are unique. “We have a unique quality, an independence. We shouldn’t be competing on rate but marketing ourselves on distinct differences. We’re not cheapest out there and this is why we are not being ashamed of it because we give out more than others.

As for Social Media, Ruth believes it is great if using it for the right reasons. Some for specials, some quick enquiries, some as communities. Such an individual aspect for each business it needs to be considered on how it works best.

There’s a lot more to come from the Olympics, if hotels, the country and everyone works hard enough to bleed as much from the international profile gained as possible.


Ryan C Haynes is VP – Marketing Communications at eRevMax and is responsible for driving all PR and Marketing activities for RateTiger and eRevMax brands globally. Ryan is based out of London and can be reached at ryanh@ratetiger.com

HITEC 2011

This year’s edition of HITEC, the world’s largest hospitality technology exposition and conference, took place in Austin, Texas. We attended the four day event and made the most of it. Having had our stand in one of the main sections helped us meet a lot of people.

HITEC is a combination of hospitality technology education, led by industry peers and experts, and a trade show showcasing the latest hospitality technology products and services.

The event offers us a B2B platform that introduces us to new contacts for our various product lines. This is our chance to present our powerful back-end tools for vendors and large hotel chains, RTCorp and RTConnect, though it amazes me how much of the industry is playing catch-up with new business revenue models through the internet.

Tradeshows like these provide us an opportunity to see how customers and the industry in general perceive RateTiger. We always get to hear good reviews and appreciation, which further encourages us to innovate and develop new features and products to serve the sector better.

Gerard Carrie is VP Sales – Americas at eRevMax. He is based out of Florida, USA and can be reached at gerardc@ratetiger.com

BITAC Tech & Operations 2011

BITAC is a technical show with vendors ranging from energy management systems to security systems to kitchen inventory management to just about anything that a hotel might need.  It basically provides hotels with opportunity to explore better ways of running their hotel operations at affordable prices.


The main discussions revolved around the need for being economical in all purchases. Hoteliers are looking at everything with magnifying glass, very careful in what they invest and how they spend their money. Vendor relationships were touched upon and examples of service providers who stuck by hoteliers in bad times were highlighted.

Overall BITAC was a nice event with lot of networking opportunities and good exposure for us.

Jan Murza is Sales Manager – USA at eRevMax and is responsible for sales of RateTiger products in the region. He is based out of Orlando and can be reached at janm@ratetiger.com

Arabian Travel Market 2011

Last month I attended the Arabian Travel Market in Dubai which is the pre-eminent travel show for the Middle East. The exhibitors here come from all over the world, but the main stands and exhibition space are devoted to those from the Middle-East and in particular the United Arab Emirates. 

General sentiment amongst exhibitors this year was a lot better than last, with hotels reporting much better results in the first quarter of the year after a really difficult 2010. The overall picture was though very localised as obviously some markets such as Egypt, Libya and Bahrain had seen almost complete drop-off in visitors due to internal political situations since the beginning of the year. 



In regards to the distribution scenario
, hotels in the region have really woken up to the need to intensify marketing and sales. The re-initiation of the construction of stalled hotel projects and renovations has restored faith among hoteliers about the future growth potential. Hence hoteliers were keen to find ways to effectively manage distributions and remain competitive.

All in all, a really great way to meet industry peers in the region over a few days at a professionally organised event. Looking forward to the 2012 edition.

Giles Gurney is Sales Manager – Mid-East at eRevMax and is responsible for sales of RateTiger products in the region. He can be reached at gilesg@ratetiger.com