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Top five trends which will shape US Hospitality industry this year – Part II

In my previous article (See Here) I’ve talked about Last Minute Bookings & Mobile Wallet that are the ongoing trends in the US here is the later part of the article.

Don’t underestimate the power of Meta & OTA

In the last couple of years metasearch has become a strong and separate medium for providing hotels more direct bookings – though OTAs still the largest medium for hotels to sell their rooms. But with the launch of InstantBooking by TripAdvisorlast year hotel veterans prophesise this is going to change the concept of contemporary hotel distribution. Hoteliers who were present at the event stated that in the coming future more and more hotels will opt for CPA (Click per Action) model which is more cost effective and gives better ROI. The future of hotel distribution is going to be mix of OTA and metasearch- one is stand for its dominating market share and the later to give more direct booking reducing commission money paid to the OTAs.

Customer Journey: It’s evolving

An eMarketer report states that 4.55 billion people in our planetsown a mobile phone. The global smartphone audience in 2014 was 1.75 billion and by the end of 2017, 50% of world population will have a smartphone. In US alone every people (327 million) own a mobile phone and more than 64% people (182 million) have smartphones – the number simply cannot be denied.   Such tremendous growth of mobile and accessibility of high-speed internet have changed the purchasing behaviour and travel journey of the people.  Over last three years US economy has reached to a stable position after its Great Economic Recession. Now, with more capital flows the middle class millenials continues its surge- spending their money on shopping and travel planning. The tech-savvy travellers with their always connected device are constantly researching about their favorite travel destination, hotels and sharing these experiences on social media. A traveller’s decision is taken much before he/she chooses an accommodation. They look for the right time to get their favourite rooms at right price doing comparison search at the very last moment.


Reputation management: It matters

While exchanging our views at the event I realized one thing in the coming years user generated content is going to be a top priority area for the hoteliers. Currently, there are total 3 billion internet users and 1.96 billion social media users in the world- it is no wonder that key hotel investment trends in 2015 would include the development of one-to-one relationship with guests through reputation management and personalized marketing. Managing reputation is no longer considered about how many positive reviews you have on TripAdvisor. It is about a conversation with your guests and what are their overall views about your property they are sharing on various social media channels.

A recent survey by Laterooms.com suggests that 90% of travellers would avoid booking hotels labelled as “dirty” in online review sites. As an increased number of travellers using Facebook, Twitter to search about hotel information it is becoming crucial for hotel operators to manage their property’s reputation through a reputation management tool. Properties who want to monitor and manage their reputation will need a one-stop solution like RateTiger Review to consolidate all online guest reviews from various travel review and social media websites engaging in one-to-one conversation. If you engage with your guests in a conversation and respond to their needs publicly will definitely help you to win the trust of your guests which will drive more loyal customers for the future.


US travel market is the most diversify market in the world. Future of travel in this country is going to depend upon data-driven strategy.  As travel market is becoming more complex you need to understand various steps of travel journey through semantic analysis based on the available data to take more predictive decision.

Jan Murza is Director of Sales- Americas at eRevMax.  He can be reached at janm@erevmax.com
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How Google Search Works

Google, the search engine giant searches more than 40,000 pages per second or billions of web pages per day. Search starts with the web and it is made up of over 60 trillion individual pages and the number is constantly growing.


How the search giant finds relevant results of your search query in the blink of an eye? Explore the art and science that makes it possible. Google does it in three steps – Crawling & Indexing, Algorithms & Spam Filter.

See more here How Google Works

Crawling & Indexing

Google use software known as “Web Crawlers”, it searches trillions of web pages and gathers the information and provides you the most useful results. Crawlers finds link to link, page to page and bring data about those web pages back to Google’s servers.

Algorithms

Google has spent more than one million computing hours to build their 100,000,000 gigabytes index which finds billions of queries in a fraction of second. This search query is based on an algorithm- a complex computer program and formulas which brings the answers to your search query.


Fighting Spam

Spam sites use various techniques such as repeating keywords or putting invisible links over and over to game their way to the top of search ranking. Google fight with these spam sites through a combination of computer algorithms and manual review and finds the legitimate websites of your search query.

See full story here How Google Works
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Amazon’s entry to online travel – is that disruption?

As if the entries of Google and TripAdvisor were not enough disruption, we now have Amazon which is entering into hotel distribution. So while buying your books and what nots, you can now go and buy a hotel room from the retail GIANT!
Amazon Local currency has already been selling some limited and wholesaler type hotel programs for a while now. But that was more of a distressed sale kind of an approach they were taking. With the new model, Amazon is asking hotels to publish their rates and availability for a longer period. For hotels, this means hotels can push full price inventories in the peak season, and of course offer discounts when they are desperate.
Does that mean Amazon is now seriously entering into travel services a la Google?  Travel analysts apparently think so.  Expedia CEO has already ‘welcomed Amazon into the party’.
Truth is, as Expedia Inc. CEO Dara Khosrowshahi says, travel today is a trillion dollar global industry. And everyone wants to take a share of the pie. That is why we are seeing TripAdvisor making serious entry to commission based model through TripConnect Instant booking. Wait for Google to make the next move.
Are these changes going to make it more complicated for hoteliers? In my opinion, Amazon, with its marketing capabilities, can become a serious alternative for independent and small hotels. What about TripConnect and Google Direct booking, when they are launched globally?

But as always, your success depends on how well you manage your booking channels. 
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eRevMax launches RateTiger & Connect Analytics for hotels

eRevMax, the leading provider of electronic distribution, smart travel channel connectivity, market intelligence and revenue management solutions for the hospitality industry has launched RateTiger & Connect Analytics, a first of its kind of Business Intelligence solution for the hospitality industry. Hoteliers using Analytics will be able to get instant visibility into their business performance at anytime from anywhere.

On the launch of the Analytics Michael McCartan, CEO, eRevMax said “In today’s extremely competitive business environment, it has become critical for our hotel clients to filter data meaningfully to detect problems, identify opportunities, and respond to market dynamics. Our new solution combines eRevMax’s extensive expertise on online distribution, intuitive benchmarking and deep analytical capabilities.” 
Designed in collaboration with revenue managers Analytics, offers benchmarking on important parameters obtain real-time production data, analyse gaps to give hoteliers a clear picture of their business.
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Top Hospitality Industry Trends for 2014

Hospitality industry is constantly evolving and always trying to stay one step ahead. In an industry where change is the ultimate word, keeping up to date on the latest trends in hospitality technology – is a daunting task for hotel owners and operators. Everything from in-room entertainment to guest service management to effective use of social media is becoming a challenging task. The hospitality industry saw a lot of exciting things happening in 2013 and some that would continue to impact business are highlighted below –
Mobile: The Game Changer

Mobile phone has radically changed the world – 62% of the world’s population is using mobile phones. Hospitality is no exception to this revolution, in some cases leading the way. It is the new face of computing as devices such as tablets and smartphones have revolutionized the way we interact with technology. The rise of mobile users have impacted business strategy and changed guest behavior largely. There has been a myth that mobile phone has the minimal impact on hospitality industry but as the smartphones and tablets become critical tools, the myth has been thoroughly laid to rest. Now nearly 45% travellers travel with two or more devices and 7% of bookings are done through mobile phone which is continuously increasing.
2014: The Year of Meta-search

With the grand entry of TripAdvisor and Google in the metasearch space the whole hotel distribution scenario has drastically changed. Modern travellers believe in competitive shopping. According a survey by eMarketer– a guest visits minimum six sites before he makes any booking decision. One of our recent infographics on meta-search shows that Kayak processed over 1577 million queries in 2013 and TripAdvisor receives 260 million monthly unique visits to its website. The dominance of meta-search engines will grow rapidly in 2014 as these sites are becoming mainstream in hotel distribution space.
Free Wi-Fi

Research studies show that 85% travellers believe Wi-Fi in hotels should be free. Nowadays the only thing that guests would prefer over a complimentary breakfast or free parking is Wi-Fi. Modern travelers are hyper-connected and do not have patience for poor internet connection in hotels. Your hotel should facilitate free Wi-Fi so that business travellers can check their emails and take online conference calls, while leisure travelers can use the internet to communicate with friends and family or enjoy music. Poor internet connection is one of the most common complains and something that you should save your hotel from. So if your hotel provides free Wi-Fi service to guests, make sure that the speed of the internet is not irritating them.
Word Of Mouth

As we increasingly live our lives online, we’re finding that not only are there major downsides to all that social media over-sharing—but we may have little control over the way we appear on the internet. According to a new eMarketer report, the Worldwide Social Network Users in 2013 was 1.73 billion i.e. one in four people were connected through social media. And by 2017, total global social network audience will be 2.55 billion. TripAdvisor is the largest source of hotel reviews having 150 million reviews and opinions covering 3.7 million accommodation providers. Considering there are millions of reviews written each day across a plethora of different platforms, the internet has the power to influence one’s decision making process. So managing reputation be it through social media or replying to the guests directly through reputation management tool will become increasingly important.
Guest Service

Guest service is an inseparable part of the hospitality business. However changing consumer tastes has led to higher expectations and hotels need to live up to these. Travellers today do not want to feel like they are in a corporate setting when they are staying at your hotel – they would rather prefer an environment where they can interact with people and receive personal attention. Eye for detail is an important aspect that hotels need to focus on and ‘wowing’ guests with impeccable service is something that every hotel is striving for. You need to identify what you can do to make your guests’ stay unforgettable to win over their loyalty.
Behavioural Change of GenY

The travel industry is riding a wave of change. An unpredictable economy and fast-paced technological advancements have caused 21st century travellers to shift their behaviour dramatically. These travellers prefer to interact with hotel staff through technology rather than picking up the phone. About 40% of guests at a hotel select iPad as their communication device to connect to a hotel and plan check-in time. So what do guests want? Well, it could be a long list starting with – free Wi-Fi, automated check-in / check-out and multi-use lobbies that encourage guests to socialize among various other things. This new segment of traveler is no longer looking for white-linen service, hotel boy to carry their luggage up to their room rather to check-in online to bypass the front desk.
Home Away From Home

When travellers enter a hotel, they look for a home-like ambience. Hotel companies need to be able to offer high quality guest service alongside seamless communication and comfort to every guest. To achieve this, a hotel needs to have its back-office set in a way such that everything moves to clock-wise precision. And this starts from the time the guest researches your hotel to making the reservation, the actual stay and post stay feedback. Everything needs to be managed efficiently for a well-rounded experience for the guest.
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Infographic: eRevMax predicts 2014 to be the year of Meta-search

Previously, hoteliers have primarily focused upon direct marketing and OTAs, but there’s a new player in terms of hotel channel distribution and it looks like it’s here to stay. Meta search is proving hugely popular with the younger generation who, with perhaps tighter budgets than their older counterparts, are more cost conscious when it comes to travel. There has been a 13 percent increase in meta search traffic in the past year alone, with meta search websites such as Kayak processing almost 1600 million queries annually. It is widely suggested that hoteliers begin to amend their marketing strategies to include meta search in a more prominent role.


To access the full infographic, click Meta-search 2014 – It’s here to stay

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eRevMax adds metasearch channels in its distribution offerings

While the concept of Meta search has existed for a number of years, but recently this method of research has become prominent within the travel industry. Following a 13 percent annual growth and a greater number of travellers citing a preference for Metasearch, eRevMax has partnered with World Independent Hotel Promotion (WIHP), to allow users of Connect and RateTiger to expand their visibility across Google Hotel Finder, TripAdvisor, Trivago, Kayak, and WeGo. It is anticipated that this will boost direct bookings, therefore reducing OTA fees. As a result of this partnership, tens of thousands of hotels across the world have been given new and exciting opportunities, according to WIHP VP Martin Soler.

This new partnership will help hotels to increase bookings and revenue for their property, by driving qualified leads from metasearch sites to their own website. This will help them in reducing OTA commissions and improve overall profitability. The advanced tracking available with the service will help hotels to know the exact return on investment for each metasearch channel they are advertising on.
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Why It’s Time to Include Meta Search in Your Distribution Portfolio

Hotels around the globe are being told to prepare for the metasearchera, and that includes changing their marketing strategies, outlook, and software systems to make the transition from solely direct and OTA bookings to direct bookings via travel oriented meta search engines such as TripAdvisor. Meta search is fast becoming the ‘goto’ method of travel booking, up by 13 percent in the past year alone. Why? Not only are the younger generation of travellers more web savvy, but travellers today are also striving to find the best deals to meet strict budgets. Utilising meta search channels isn’t just about staying in the game, it’s about diversifying audiences, increasing visibility, and boosting brand reputation across multiple platforms.

Meta search allows for visitors to book either through OTAs or through the brand website, helping to increase direct sales. Meta search sites such as TripAdvisor have been criticized for favouring OTAs with which they have a partnership, but direct information is available, which is more than can be said for OTAs themselves.

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FITUR to witness TigerTime by eRevMax

Earlier this year, eRevMax hosted its signature TigerTime at the FITUR International Tourism Trade Fair in Madrid in associate with World Independent Hotel Promotion (WIHP) and Ostrovok, Russia’s largest accommodation provider. Recently eRevMax partnered with WIHP to offer metasearch services to the hotels in to help hoteliers generating more direct bookings. At stand 8B19 Martin Soler of WIHP presented how can hotels lessen their dependency on OTAs by connecting to metasearch sites.
TigerTime by eRevMax is the perfect platform for hotels and OTAs to present their value proposition to a varied set of attendees. It helps them to showcase how hoteliers and OTAs can benefitted from advanced XML connectivity and how they can reach out to the diverse client base. Apart from being a great branding exercise, this platform put them directly in touch with key decision makers who can understand the value of networking.
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eRevMax predicts hotel online distribution trends 2014

As technology advances and the world of social media expands, more and more travelers are turning towards smart phones and tablets to book hotel rooms. eRevMax, the leader in hotel online distribution and channel management solution has released an Infographic “Online Hotel Distribution” to provide hoteliers with upcoming trends backed by relevant data.


Travelers who book hotel rooms online are increasingly equipped with smart phones and tablets. The infographic shows 7% of all bookings were generated from mobile and tablet devices in 2013, and this trend will grow by another 20% this year. In 2014, hotel bookings through mobile will contribute over $26 billion.


The eRevMax study sheds light on how metasearch sites realized a 13% increase in 2013. Google Hotel Finder, TripConnect and Trivago are becoming a driving force in hotel online distribution as 60% of travellers shop by comparing rates on these sites. To shift market share from the OTAs to direct bookings, hoteliers should utilize metasearch sites as a part of their overall distrbution strategy as it offers better search experience and allows the traveller to find the lowest prices available online.

Bookings from OTAs surged ahead with a 12% rise in Q3 2013 and now stands at 13% of overall bookings in North America. It also shows that 33% of all bookings take place at the brand’s website, an increase of 5% in Q3 2013. eRevMax suggests hoteliers work with OTAs to increase revenues and implement reputation management solutions for quick responses to their guests.

Another important tip by the hotel solutions provider is to leverage the billboard effect, defined as the increase in offline bookings of a property when it is listed with an Online Travel Agency (OTA). An experiment conducted by Cornell University observed that one of the participant hotels experienced an impressive 14% increase in direct bookings when it contracted with an OTA. Besides, Average Daily Rate (ADR) increased by 1.5% during OTA listing of the same property. 

In this world of social media, SEO and analytics, failure to adopt digital platforms in their marketing strategy is suicidal for hotels. The data shows that 81% of tech-savvy travellers find user reviews important, while 49% travellers book hotel only after reading reviews. Nearly 21% used Facebook to search for hotel information at least once while 14% of travellers use the Facebook platform to book a hotel room. Hence, it is imperative that hotels take social-commerce seriously. 

To access the full infographic, click Infographic: Online Hotel Distribution 2014