Tag: OTA

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Channel management is fundamental to hoteliers

Recent drops in currency value, increasing flight prices and recession-related job uncertainties have had a significant effect on the travel industry. Not only are fewer people travelling, but those who travel are becoming more budget conscious. Effective channel management can assist hoteliers with both issues – by increasing visibility and allowing for variable rate changes between seasons. Surveys suggest that the average hotel chain manages four separate third party channels, yet a failure to standardise data across the board can have negative effects. For effective channel management, an automated system is the preferred choice over manual upkeep, especially when increasing channel usage.

Today consumers compare rates in multiple price comparison websites and booking channels and selects lowest available rates of all. With channel manager revenue managers can more accurately forecast consumer behaviour and take effective pricing decisions for more online revenue. The challenge for many hoteliers in managing multiple channels to ensure accurate rates and inventory allocation to optimise each channel is very difficult. But with channel manager like RateTiger it becomes easier for hoteliers to take more effective pricing decisions.

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Barteo – 365nights.com completes XML integration with eRevMax

365nights has recently partnered with eRevMax, utilising the RateTigerdistribution system to make real-time ARI (Availability, Rates & Inventory) updates and receive bookings generated on the channel through eRevMax solutions directly into their property management system. The French-based company are confident that the ease of use and immediate results will boost their client portfolio whilst keeping existing users happy. 365nights chose RateTiger as they were looking to focus on “reliable connectivity which will save time and energy”, according to CEO Thomas Hiley and for a system that would simultaneously manage availability, rates, and inventory.

Launched in 2013, the France based price comparison site allows potential guests to negotiate on the price of the room directly with the hotel and in real time, before making an actual booking. Greg Berman, Chief Operations Officer at eRevMax said with this partnership 365nights.com will become certified eRevMax channel ecosystem partner through which both the channel and the hotels will be benefitted.
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Improve direct booking through incentives

Mega online travel agencies are costly distribution channels for hoteliers. Hoteliers suffer from huge amount of revenue loss due to the high commissions charged by the Online Travel Agencies i.e. from 10-25 percent. So how can hotels bring customers to their own website for direct bookings instead of visiting an OTA?  A recent survey conducted among 2500 customers by Software Advice finds the answer:-
If a hotel wants to implement your suggestions on offering a free room upgrade or any other perk, how and when should they do this?
Our survey showed that consumers don’t agree on what free room upgrade they prefer, so it’s best for hotels to have a variety of room types available. This upgrade should be promoted to travelers at every possible chance: social media channels, the hotel’s booking page, within hotel marketing emails and other materials.
Is it really cost effective to offer a traveler a free room upgrade just to get them to book direct, saving the hotel the 10-20% OTA fee?
An upgrade to a room with a better view shouldn’t cost the hotel much, but the cost effectiveness of offering a room with a kitchenette, balcony or living room will depend on the particular hotel’s availability, rates and season. Even if the incentive costs as much as the OTA commission, the hotel has an opportunity to delight the guest and drive brand loyalty.
Even though a perk like free room service wasn’t the most popular incentive, do you feel it could still convince travelers to book direct?
I think free room service is a strong incentive for consumers to book directly, as the results showed that travelers are highly motivated by offers of food and drinks. Food is also a relatively low-cost offer for hotels.
Should hotels take the traveler’s age into consideration before offering perks like these, or even certain kinds of perks for certain age ranges?
In general, perks for free food and drinks should be effective for all ages, but different types of gift cards can be more effective for different ages. For example, our survey shows an older couple might respond better to a gift card for a local restaurant, while younger travelers could be more convinced by a gift card for a local theme park.
Were you surprised by any of the survey results?
I think it’s reasonable to expect people to be motivated by food and drinks since dining is such an important and often expensive aspect of traveling. However, I was surprised that the results for the most convincing room upgrade were split so evenly.
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eRevMax Channel Ecosystem connects with leading Japanese OTA for deeper integration

Rakuten Travel has become the first Japan-based OTA to partner with eRevMax, utilising the ARI abilities of both RateTiger and Connect to offer greater opportunities to their clients. Rakuten Travel had noticed the changing trends within the travel industry particularly that travellers are now looking for more choices, competitive rates and last minute deals. This integration is become the part of Rakuten Travel’s global expansion says company president Takanobu Yamamoto.

The largest online hotel reservation website of the Japan, Rakuten Travel, currently connected with over 80,000 hotels worldwide including approximately 30,000 hotels in Japan, will be able to gain access to broader products and more availability, improve booking conversion and increase revenues as part of its growth plans across South East Asia, USA and Latin America.

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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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The Indian Traveller 2014

The third largest economy in the world India is becoming on the major player in travel space. Despite a slower economy and foreign exchange volatility, over 15 million Indian travellers are planning foreign trip shows an infographic, recently released by eRevMax. The Middle East and Far East have certainly been leaders so far but interestingly, India is catching up.  The infographic reports that 33 percent of travel-related searches within India are now made online, with mobile being the preferred choice. The solutions provider suggests regional online travel agents should focus on connecting the hotesl of Middle East and APAC region to gain more revenue.


To access the full infographic, click Infographic: The Indian Traveller 2014
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Newshound: Trends and Reports – Hotel Online Distribution


GHOTEL hotel & living selects RateTiger for smart online room distribution

German hospitality group GHOTEL hotel & living has selected RateTiger’s industry leading Channel Manager to maximise its distribution reach for its unique accommodation offerings by updating distribution channels efficiently in real-time.
http://www.eglobaltravelmedia.com.au/z-more/technology-more/ghotel-hotel-living-selects-ratetiger-for-smart-online-room-distribution.html

The Future of Hotel Marketing: Social Media Synopsis
Hotel chains that are open to 24/7 online social communications with their fan base can sense the power of a free flowing exchange of ideas, and capitalize on a low-cost marketing channel solution. Communication with customer base via social media channels is now expected as standard, whether these platforms are utilized to shape brand image, facilitate user-generated content or compliment a targeted pay-per-click campaign, social media is vital to the success of a hotel property.
http://hotelexecutive.com/business_review/3441/the-future-of-hotel-marketing-social-media-synopsis

Data transformation key for revenue managers

As more data becomes available, revenue managers must be able to filter and make sense of only the best information in order to achieve their goals, sources said during a Hospitality Sales and Marketing Association International (HSMAI) webinar. “Some people may say that we’re drowning in data, but I think it’s more accurate to say that we’re drowning in information,” said Kevin Coleman, partner and COO at Intelligent Hospitality, a hotel business intelligence company that provides reporting and analytics for hotel sales, marketing and revenue management.
http://www.hotelnewsnow.com/Articles.aspx/10263/Data-transformation-key-for-revenue-managers

A Call to Arms: How to Shift Market Share from the OTAs to the Hotel Website

 
This year, the hospitality industry is in for a lot of pain. OTA dependency continues to plague the hospitality industry, despite gains in the past three years and positive trends in all three industry indicators. This isn’t new. What’s new is the pain to the bottom line inflicted by the fat commission checks hoteliers are now paying Expedia and other OTAs, due to the widespread adoption of Expedia”s and Booking.com”s agency model in the U.S.
http://www.hospitalitynet.org/column/global/154000392/4060290.html  

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Newshound: Trends and Reports – Hotel Online Distribution


The new Google travel ecosystem… from the user point of view

Back in July 2010, when Google said it was splashing out $700 million on air search and shopping tech provider ITA Software, officials  put together a handy diagram. The online travel ecosystem, as it was called, outlined where Google’s latest acquisition sat in the world of travel distribution and was produced in part to demonstrate to US regulators that despite it suddenly making a serious move on the world of travel, other providers remained and were apparently plentiful.
http://www.tnooz.com/2012/08/20/news/the-new-google-travel-ecosystem-from-the-user-point-of-view/#3BmMKLXOmy0dJPpK.99

Dynamics Shifting in OTA-Hotelier Relationship as APAC Hotel Market Matures

The ongoing battle between hoteliers and third party intermediaries over control of inventory and the customer is set to become more complex as a massive influx of supply and changes in consumer behaviour converge to transform the hotel landscape in Asia Pacific. In other words, expect to see power shifts between OTAs, in particular, and hotels as the former moves in to ride on the boom and consolidate their hold while global hotel brands crank up their inventory in the region.
http://www.webintravel.com/news/dynamics-shifting-in-otahotelier-relationship-as-apac-hotel-market-matures_3349

Pricing strategies and understanding the value conscious and social consumer

New research SAS’ Hospitality and Travel Global Practice shows that a low price will not overcome the impact of a negative review. Consumers will look at the review sentiment first, eliminating any choice with negative UGC, and then move on to evaluate price and other attributes. This is not to say that a low price is not attractive, but rather, that consumers are value conscious, rather than simply price conscious, and they will look at the whole package. User-generated content, in the form of ratings and reviews, have become a key part of this value equation.
http://www.eyefortravel.com/revenue-and-data-management/pricing-strategies-and-understanding-value-conscious-and-social-consumer

OTAs drive four and five-star hotel overnights

According to a new study, rooms at four-star hotels in Europe can now increasingly be booked for the price of middle-class accommodation. The same applies for luxury hotel overnights, offered at reduced rates by OTAs. As a result bookings for four and five-star accommodation have increased and will probably continue to do so.
http://hotelmarketing.com/index.php/content/article/otas_drive_four_and_five_star_hotel_overnights

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HITEC 2012


So the countdown begins… one more week to go and Baltimore will have Ryan C Haynes included in its list of tourist arrivals. And why just me? There will be thousands more who would be swarming the BWI Airport over the weekend to make it in time for the big hospitality technology show of the year – HITEC, starting 25th June 2012.

I have a firm understanding that this is where deals are made and where the technology for the industry takes tip-toes, steps or leaps forward to meet the demands of the ever-changing hotel operation environment. I’m really interested to learn who the big players are, it’s not an event like the consumer shows, this is business, so interested to see what will happen?

So what’s on offer? Well of course RateTiger will be there at booth 1716 speaking to the attendees, and I am there to meet the press.  After 5 very enjoyable years educating the journalists on channel management this is my time to say “Hello”, shake their hands, thank them and find out where we go next.

The conference part of the show starts with various boot camps, educational sessions as well as CHAE and CHTP exams on Monday. Day 2 looks exciting with an interesting key note session by professional hacker Josh Klein, who will speak about ‘Self Defense in the New Media Age’ (a dose of this should come in handy!).  Day 3 includes the much talked about ‘Search, Mobile and Social media’, ‘Reinventing CRM and BI as Revenue Drivers’ and ‘Gleaning Business Intelligence from Social Media’. Given that RateTiger dabbles in all three offering relevant applications, we are very excited to hear what the speakers have to say.

Still – seamless, two-way connectivity will be on the lips, as we continue the discussion to the next level looking deeper at simplifying the complexity of the “Push, Pull, Push, Pull models”. And we will be looking at how OTAs will be changing their sales model and the future role of social networks, Google and flash sales sites in hotel booking strategies.

Other than this, there will definitely be a lot of networking and some nice evening dinners with the team. So, time for a few last minute preparations and then off I go. More when I am back. See you at HITEC.

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

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ITB Berlin 2012

The travel industry was at centre stage at ITB Berlin – the world’s biggest travel trade show, and one of the best predictors of upcoming trends in the industry. 

With over 230 travel technology companies exhibiting and over 110,000 trade visitors attending, the technology halls were buzzing with activities. The industry is really embracing channel management and the travel technology revolution is at its full steam. I was glad to see that this is mostly being driven by opinionated bloggers and well read journalists who understand the relevance of technology in travel.

RateTiger had a corner stand, giving us enough room to accommodate our never ending stream of visitors. Most of the audience this year showed an increased level of awareness towards the key online distribution technologies and the critical role of an efficient sales channel management strategy as part of the Revenue Management process. 

Cristina Hernandez, Sales Manager, Germany saw a lot of discussion around HRS and the price-fixing issue in Germany. She says “This could spell a game-change for HRS which is expected to launch a new business model. While one of the largest OTA websites, HRS could easily fall victim to consumer and industry dissatisfaction with so many other channels vying for their market. The big question – what happens to rate parity? We will soon see how hoteliers themselves need to respond to this price-fixing ruling.”

On another end of the scale, Cristina Blaj, Sales Manager, UK witnessed discussions on voucher-sites – Groupon growing its travel offering – its marketing activity ramping up, and gaining a greater consumer foothold. However many discussed how damaging this is to revenue and profits. It is claimed that Groupon encourages return purchases at the normal rates following a significant promotional offer, yet the impact of Groupon on this is yet to be seen.

While my colleagues were busy understanding trends in their interest areas, I managed to get involved with discussions on marketing in revenue management, how it is today being forgotten and yet it is so much a part of the buying process. I believe it is important for hotels to have visibility and exposure across as many channels as possible, yet have a strong website for direct sales. Even Cornell University recently published a paper showing how listing on Expedia increases direct website visits. The idea is to have a good distribution mix and keep flexing the different websites while assessing volume to improve occupancy and revenue through different channels.

Overall, like every year, ITB had put up a great show, offering exhibitors and visitors what they came looking for. Check out our pictures from the event. I look forward to the Asian edition of the event in Singapore later this year. Cheers!


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