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Transcript of Pilar sanchezaita ratetiger[faro]
“Making the most of IDS as part of your Revenue Management strategy”
TTT Best Practices Forum Hotel Distribution Associação da Hotelaria de Portugal
30 Novembro 2010 | FARO – Escola de Hotelaria e Turismo do Algarve
Pilar Sánchez Aita, RateTiger
www.ratetiger.com
FASTEN
< 1990 1990-1997 1998-2002 2003-2006 2007-2008
Web InternetWWW, NEXUS,
Mozilla
Search EnginesArchie, Gopher, Lycos, Altavista,
Inktomi, Ask Jeeves
Google, Baidumore
Yahoo search,MSN Search,
Info.com, more
Online Travel
Travelweb (PEGS), WorldRes, Travelocity,
Hotelbook (PEGS)
Expedia,,Bookings,
many more
Web 2.0 - Reviews TripadvisorHolidaycheck,
trivago and moreExplosion
(including OTA)
Meta-Search EnginesKayak, Sidestep,
TOGOL, Mobissimoand more
Explosion - specialized
(e.g. trivago)
Web 2.0 - Social CommunitiesWeb-sharing
Facebook, MySpace,YouTube, WAYN
Explosion
More browsers
Explosion of websites
MO
RE
PR
OD
UC
TBrief History of e-Commerce
www.ratetiger.com
What do we know? We know the internet is becoming more and more powerful and more of a
necessity, rather than a luxury in our everyday lives.
We know that hoteliers are learning to use more Revenue Management (Yield Management) strategies.
What is Revenue Management
“ … Revenue Management is the process of understanding, anticipating and reacting to consumer behavior in order to maximize revenue or profits… “
(Wikipedia, April 2008)
Not simply the art of being the cheapest!
The evolution of the Internet has enormous impact on Revenue Management Strategy
www.ratetiger.com
“How Internet Distribution Systems impact the way hotels need to view revenue management”
What influences consumer behaviour ?
Product In hoteliers’ control Location A set parameter Price In hoteliers’ control Availability Driven by the market and the hotelier Convenience In hoteliers’ control Impression In hoteliers’ control
Conclusion: 5 out of 6 can be influenced by the hotel
www.ratetiger.com
“How Internet Distribution Systems impact the way hotels need to view Revenue Management”
www.ratetiger.com
Segmentation of client mix (corporate / leisure / weekday / weekend / etc.)
Balance between current occupancy and rates Competitiveness of rates and ranking Consider consumer benchmarking abilities Market conditions (trade shows, events) Forecast of future occupancy Consumer trends & behaviour Competition
What the Revenue Manager must consider :
www.ratetiger.com
Why work with IDSs?
Greater exposure
Segregation of inventory
Lower cost per acquisition compared traditional (GDS and Voice)
You want their loyal customers
www.ratetiger.com
Return on your investment...
If your Average Room Rate is 100 euros per night..……
If you decided to update 10 websites ……….
If through greater exposure, you received just ONE extra room night per month from each site you work with……..
100 x 10 x 12 = 12,000 euros per year would be generated.
It’s an easy decision to make !
www.ratetiger.com
“To position or not to position…” - Parity versus maximizing opportunities at producing IDS
Hotels have the choice now...
1. Different rates at different sites
2. Keep your rate parity at all sites
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“To position or not to position…” - Parity versus maximizing opportunities at producing IDS
Parity No Parity
Uniformity at all websites Different rates @ Different sites
No confused clients Clients could be confused
Can’t optimise ratesCan optimise rates; different channels sell differently - Different countries/incomes - Different selling power of channels
No conflicts with travel websites Hotels have more control over Revenue Management / Strategy
METASEARCH: doesn’t matter for hotels using rate parity
METASEARCH: Transparency to consumers
www.ratetiger.com
Recent booking trends and the impact on revenue management
Booking trend Impact on RM
Growth of online bookings Focus on travel websites
Growing number of travel websites Greater choice of distribution / product placement
Greater choice of distribution / product placement
More decisions to be made / more updates to be processed
More decisions to be made / more updates to be processed
More time consuming and more confusing
www.ratetiger.com
Summary: Right time, right place, right price. Revenue Management in a world wide web.
Right Time – Consider:
Market conditions (trade shows, events) Level of occupancy Consumer trends & behaviour Competition
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Right Place – Research:
Global vs. national vs. regional extranet? Offline vs. online? Question: which extranets produce at the Right Time?
Summary: Right time, right place, right price. Revenue Management in a world wide web.
www.ratetiger.com
Right Price – Manage:
Segmentation of client mix (corporate / leisure / weekday / weekend / etc.)
Balance between occupancy and rates Competitiveness of rates Consider consumer benchmarking abilities
Summary: Right time, right place, right price. Revenue Management in a world wide web.
www.ratetiger.com
Where is my business coming from?
Who are my competitors and how do I compare?
Which channels do I need to work with?
What should be my pricing strategy?
How or how often should I update my distribution channels?
How do I monitor results?
… Ask yourself…
Online
RT Strategy
www.ratetiger.com
Market – Online Distribution Market Overview
DemandSegments
Channelsof Distribution Airline CRS (GDS) Switch Hotel CRS Hotels
Travel Website
Travel Agents
Sabre
WorldSpan
Amadeus
Galileo
Pegasus Chain CRS
RepresentationCompany
Chain Franchises
IndependentProperties
Event ManagementCompanies
Call Centers
Travel Websites
CORPORATETRAVEL
GROUPCONVENTION
LEISURETRAVEL
Hotel/MotelGroups
IndependentHotels
ResortsInns, B&B’s
RT Integration
RT
In
teg
rati
on
I-CRS
TRADITIONAL
INTERNET BASED
Who will help to manage this chaos ?
www.ratetiger.com
WHO ARE WE ?
RATE TIGER – We build software for hotels (since 2001) that
Simplifies competitor analysis
Centrally manages rates and availability
Automates revenue management
Products for Hotels, Hotel-Groups / Chains, Hostels and Distribution Channels
eRevMax Inc. / Rate Tiger - Key Facts
www.ratetiger.com
RateTiger Product Suite
Helping hoteliers to better manage online revenue and distribution ...
RT Strategy
www.ratetiger.com
RT Strategy
Products
Benchmarking for Hotels / Groups / Travel sites
Competitor rate information on travel and hotel sites
Weekly report or online real time (both accessible at any time)
300 websites connected / 3,000 hotel sites configured
Several packages available
www.ratetiger.com
RT Strategy
Products
Rate & Inventory Allocation
Manage multiple travel websites in one screen
Optional status quo (Pro version)
Currently over 250 sites
Several packages available
www.ratetiger.com
RT Strategy
Products
Low cost revenue management system
Based on how hotels determine rates
Three strategies
Lowest rate guarantee available for all strategies
Additional features
RT Strategy
www.ratetiger.com
… OR very simple …
Without RateTiger With RateTiger
Time consuming process?You can’t add more sites? Confused?
With RateTiger you willManage More by Managing Less
www.ratetiger.com
Top 8 Tips for Effective Revenue Maximization
1. Drop Rates Carefully2. Do not ignore historical data3. Invest in technology
9. Treat IDSs as your partners10. Use effective channel partners11. Automate allocation process12. Experiment with different IDSs13. Always focus on a mutual win, and this in turn will build trust and
loyalty
Expedia
Orbitz
hrs
City.com
Country.com
Rates & Inventory
Benchmarking
Channel Partner
www.ratetiger.com
Obrigado Thank You
Pilar Sánchez AitaTel : +34 91 127 1779Fax: +34 91 547 7187E-mail: [email protected]: www.ratetiger.com