Deconstructing Distribution - It's all About the Customer.Presented at The Leading Hotels Hotels of the World Sales, Marketing & Distribution Conference in Bonn, Germany May 13-15, 2011.
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Leading Hotels of the World - Deconstructing Distribution
1. Leading Hotels of the WorldSales, Marketing & Distribution ConferenceDeconstructing DistributionIt’s All About the Customer Robert Cole | RockCheetah Kameha Grand Bonn | May 15, 2011 Image: Brave Heart (Flickr)
2. Deconstructing Distribution The Customer Affluent Travelers Personalization & Customization Multiple Stages & Touchpoints The Channels The Splinternet SoLoMo Discounts The Future New User Experiences One Size Does Not Fit All May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 2 Image Credit:
3. Pitfall: SOS (Shiny Object Syndrome) May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 3 Image Credit: Every New Idea is Not a Good Idea
4. Pitfall: Egocentric Customer Relationship May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 4 Image: i-love-cartoons.com
5. Pitfall: Customer Engagement ≠ Marriage May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 5 Image: Defence Images (Flickr)
6. The Customer: Affluent Travelers 6.44 million US Affluent Online Travelers 89% Take At Least 1 Leisure Trip per Year 62% Have Investible Assets of $1-$2.5 Million 95%+ College Graduates | 45% Post-Grads Average Age 58 | 14 Years Above US Avg. 73% Manage Finances Online 45% Make Own Investment Decisions 30% Worse Off than One Year Ago May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 6 Image: Curtis Gregory Perry (Flickr) | Source: Forrester Research - Selling To US Online Affluent Travelers Poses A First-Class Challenge To Travel eBusiness (January 2011)
7. Affluent Travelers: Value is King May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 7 Source: Forrester Research - Selling To US Online Affluent Travelers Poses A First-Class Challenge To Travel eBusiness (January 2011)
8. Personalization & Customization Guests Are Not Frequent Guest Numbers Interactive Conversations Can Get Complicated True Customer Engagement Doesn’t Scale Well May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 8 Image: kagey_b (Flickr)
9. Guests Have Multiple Personas May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 9
10. Multiple Travel Phases (Seven) May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 10
11. Multiple Hotel Touch Points (Six) May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 11
12. Channels: A Small Sampling May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 12 Image: Michael Coghlan (Flickr) | Source: VFM Leonardo
13. SoLoMo – Distribution Gets Tricky Social Personal Likes / Group Likes / Similar Likes Cannot Fully Control Message in the Wild Local Proximity Based Offers Context-Sensitive Offers Mobile Variations – Form Factor / OS / Carrier Mobile Web (HTL5) v. Native Application (App) May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 13 Image: Jason Mcdermott(Flickr)
14. SoLoMo Travel Factoids Leisure Travel Search Average is 22 Sites Over 10 Sessions Mobile 19% Hotel Queries From Mobile Devices IHG Europe – Adding Click to Call +91% Revenue Local 70% Mobile - 1 Person, 1 Night, Same Day Social 80% of Travelers Participate in Social Media 49% Book Based on Others Experiences/Reviews May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 14 Sources: Forrester Research | Google | Ipsos/OTX 2010/2011
15. Social Media: Cynical Perspective May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 15
16. Social Media – It’s All About Trust May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 16 Source: The Nielsen Company – April 2009
17. Splinternet– Walled Gardens May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 17 Image: Stephen Bowler (Flickr) | Source: Forrester Research “The Splinternet” (January 2010)
18. Splinternet – Advertising Impact May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 18 Image: Stephen Bowler (Flickr) | Source: Forrester Research “The Splinternet” (January 2010)
19. Discounting Considerations Do Discounts Translate to Consumer Value? Does Channel Absorb Discount as Profit? Group Buying “Have never seen a profitable Groupon deal for a travel site” – H. Harteveldt, Forrester Research Flash Sales How Exclusive is the Club? Qualified User Base? New Models - Micro Auctions Off & Away – Is it a Game, a Con or New Model? Packaging Protects Retail Pricing; Requires Strong Rules Control May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 19 Image: Christopher Sessums(Flickr)
20. The Future – New User Experiences Voice Commands Google Android Voice Actions Near Field Communications Interaction / Authorization / Payment Integrated Travel Experience Apple iTravel Traditional Channels Travel Agencies / GDS / Telephone May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 20 Image: Iris Shreve Garrott(Flickr)
21. Future – Voice Commands May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 21
22. Future – Near Field Communications May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 22 Integrates Distribution / Engagement / Access Unique Sound Pattern Mobile Phone Key Openways (Example) Pre-Arrival Contact Engagement for Stay Supports All Cell Phones Uses Existing Locks Cards Keys Still Work More Secure than Cards Code Change – 12 Secs Future Support for NFC
23. Apple iTravel – End to End Control May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 23
24. Apple iTravel – Traveler Identity May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 24
25. Apple iTravel – Airport Experience May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 25
26. Apple iTravel – Hotel Experience May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 26
27. Apple iTravel – Cruise Experience May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 27
28. Apple iTravel – Conference Experience May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 28
29. Apple iTravel – Event Experience May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 29
30. Apple iTravel - Payment May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 30
31. Apple iTravel - Merchandising May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 31
32. Apple iTravel – Passive App Delivery May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 32
33. Future - Traditional Channels May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 33 Traditional Travel Agents - Specialization Origin (Local) v. Destination (Experience) Type of Travel – Luxury / Destination Weddings Online Travel Agencies Rate Parity / Last Room Availability / Max. Discount Order Takers or Order Makers? Global Distribution Systems Critical Role for Air Vertical & Corporate Segment Air Model Change – Cost Shift to Intermediary Telephone High Touch / Customer Care Mobile Click to Call
34. The New Customer Seeks Value Is More Sophisticated & Empowered Desires Unique Experiences Demands the Lowest Available Price Has Questionable Brand Loyalty Has Situational, Itinerary-centric Needs Defines the Degree of Engagement Demands Seamless Cross-Channel Access May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 34 Image: Sergey Galyonkin (Flickr)
35. New Distribution Challenges Must Have Presence in Favored Channels Consistent Cross-Channel Brand Message Consistent Online & Offline Experience Value is a Highly Personal Assessment Time, Convenience, Simplicity, Quality, Cost Efficiently Managing App & Channel Silos Competition May Behave Irrationally Distribution Costs May Shift to Subscribers May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 35 Image: Toni Blay (Flickr)
36. Navigating Distribution Obstacles Three Core Distribution Goals Easier Faster Cheaper To Be Successful, Luxury Hoteliers Must Control Retail Pricing Structure Access to Visual & Descriptive Content Distribution Rules – Access to Rates & Inventory Only Point of Focus - The Guest Why is Guest Using that Channel/Site/Tool? Is Guest Able to Accomplish that Goal? Why Not? May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 36 Image: The U.S. Army (Flickr)
37. It’s All About The Customer Questions? Copies of the Presentation? Comments? Robert Cole mail: robert@rockcheetah.com phone: +1.262.309.9560 skype: robertkcole twitter: @robertkcole web: rockcheetah.com/blog/ May 15, 2011 – Bonn, Germany Leading Hotels of the World ● Distribution Robert Cole | RockCheetah - Page 37
Notes de l'éditeur
Outstanding StrategyHolistic View of Target GuestLeaders ClubHometown BenefitsFriends & FamilyUnique Stories
Let’s start with a Few Pitfalls
Like any Relationship, Customer Relationships can Be ComplicatedPepe Le Pew (The Hotel) is Wealthy, Sophisticated, Enthusiastic, Emotionally Committed, and Interested in a Long Term RelationshipPepe cannot figure out what the problem is because he is so self absorbed. He doesn’t realize Penelope (The Customer) is a Cat.
You know the story – That first newsletter opt in was so full of affection and promise, then, 3 months later, while attending a sales conference, you learned they were not only sleeping in someone else’s bed, but with that superficial new boutique property that recently moved into the neighborhood.
One fact scarier than this explosion of channels – Missing: Social (Facebook/Flickr)Local (Foursquare / Yelp)Mobile Apps (OpenTable / TripIt)