HOTEL DIGITAL MARKETING TRENDS October 2015

in association with

Company Profile

A Digital marketing agency which specializes in hotels marketing, with extensive experience in the travel industry in Israel and abroad.

A broad range of leading global hotel clients: Arenaturist Hotels chain (part of Park Plaza Hotels), Fattal Hotels chain, Rimonim Hotels chain, David Citadel Jerusalem hotel (LHW), Mamilla Hotel (LHW) and Shenkin Hotel.

Dedicated professional team with experience in all aspects of digital marketing: SEO and UI, Google AdWords and Analytics certified experts, mobile and app analytics, ORM, content editors, social media professionals and content writers.

Comprehensive and advanced digital marketing solutions with an emphasis on high-quality services. For Carmelon, client satisfaction is an essential measure of success.

COMPANY PROFILE

Three Service Channels – One Goal

SEO Search Engine Optimization for websites

PPC Advertisement in search engines, apps, social networks and websites

Mobile Search Marketing Mobile websites optimization

1. ONLINE TRAFFIC

Web Analytics Analyzing the traffic that reaches the website or app

ORM Consulting and support for online reviews improve- ment and Hotel reputation management

CRO Conversion Rate Optimization

Accessibility Website accessibility for disabled users

GOAL

Increase online direct sales for hotels, with significantly improved ROI and better business results

3. ANALYSIS 2. ACTION

THREE SERVICE CHANNELS - ONE GOAL

What’s New in Digital Travel?

WHAT’S NEW IN DIGITAL TRAVEL?

BRAND CENTRICITY CONSUMER CENTRICITY

The biggest trend in the hotel, accommodation and travel industry for 2015 - 2016 is Consumer Centricity

Consumer Centricity: Traveler’s Journey

Understanding the Path to Purchase and the triggers affecting each stage

CONSUMER CENTRICITY: TRAVELER’S JOURNEY

Reviews, Social Media

Content, Ads, Search and Social

Reviews

Content Reviews, Cross

Services, Concierge Aps

and Social Reviews

Staying

Websites, OTAs,

Reviews TRAVELER‘S JOURNEY

To offer value to consumers, travel industry competitors must understand what is driving consumers:

WHAT ARE THE MAIN CONSUMER TRENDS?

They are looking for the best offer that would maximize the value they are getting for their money

They are looking for the most convenient,instant experience, straight from their mobile, seamlessly moving between channels

They rely on their social network and friends – as a result, we are witnessing a booming “sharing economy”

The travel consumers are increasingly searching for a tailored, personal experience

PERSONAL

CONVENIANT

SOCIAL

VALUE FOR MONEY

Competitors are increasingly responding to consumer needs via the following strategies:

WHAT ARE THE MAIN COMPETITOR STRATEGIES?

Competitors respond with loyalty programs

Cross-services that enhance the customer experience

Focus on mobile strategy: pre-stay, on-stay, post-stay apps and concierge services

Focus on location based & connected offers

Competitors seek a share of the Sharing Economy with new models

Emphasizing reviews to support the consumer decision process

Using big data for personalization – “Just for You”

Social Log-in

Special offers per segment – including content, commerce, experience

PERSONAL

CONVENIANT

SOCIAL

VALUE FOR MONEY

Circle: Main consumer trends | Arrows: Respective strategies

TREND MAP - ROUNDUP

Loyalty

Entertainment

Luxury

Mobile + omni-channel

Instant

Concierge New Price

Cross-services Paradigms

Self Service

IoT & Wearables

Reviews

Sharing Economy

Referrals

Segmentation

Customization

Personalization

Big Data

Content PERSONAL

CONVENIANT

SOCIAL

VALUE FOR MONEY

Integration along the Path to Purchase

The Consumer-Centric approach drove many competitors to offer “end-to-end experiences”, realizing that the consumers don’t want “a hotel”, “a flight” or “tickets”: they want a great experience. The most prominent instruments we have noticed for creating such experience are:

Content - ideas, inspiration, reviews which pertain to the entire trip (including dining, tickets and even social acquaintances)

Mobile – self service, concierge apps, digital wallet etc.

INTEGRATION ALONG THE PATH TO PURCHASE

Trend #1: Personalization

Personalization = better conversion. The more relevant the content / offer to the consumer, the more he/she are likely to make a purchase. Today, Personalization is enabled by mobile, but it also stems from the rise in “big data” and the ability to analyze the data, reaching “micro segments”. Industry competitors are also targeting consumer segments, and this is increa- singly based on data analysis.

TREND #1: PERSONALIZATION

Enabling Technology: Big data TripAdvisor’s Just For You personalization feature

PERSONALIZATION | SPECIAL OFFERS

PERSONALIZATION | CONTENT

Community Research

On the Trip

TripAdvisor uses personalized content to drive traffic to its site

Content Drives Audience

Audience Drives Leads

Community Drives Content

“Luxury” Airbnb – “One Fine Stay” (UK): adaptation of the Airbnb model, targeting a specific client segment.

PERSONALIZATION | SEGMENTATION

Trend #2: Convenience

The need for extra convenience is a mega-trend concerning any industry This stems from lack of time on the one hand – and the consumers’ growing reliance on technology to make their life easier

Common strategies include:

Omni-Channel – “all in one place”

Mobile – “wherever / whenever”

Cross-services – “one stop shop”

Instant offers – concierge apps and services, immediate & location-based offers (sometimes based on Internet of Things/ beacons

INTEGRATION ALONG THE PATH TO PURCHASE

TripAdvisor acquired Viator – a global leader in online tours and attractions bookings.

CONVENIENCE | CROSS-SERVICES

Booking Now shows the best nearby properties with immediate availability in a single page, personalized experience.

Available for mobile and Apple watch.

CONVENIENCE | CROSS-SERVICES

Priceline.com and other OTAs now enable mobile wallet payment

CONVENIENCE | CROSS-SERVICES

Pay with Google Wallet

CONVENIENCE | SERVICE INNOVATION

iBeacon technology Beacons placed in the lobbies and restaurants of the IHG hotels recognize IHG REWARDS CLUB members

using the IHG APP in close proximity. They then send information to the guest’s smartphone, including

personalized notifications and offers relevant to their stay. The pilot is being implemented in a selection of

hotels in China.

The Intercontinental (IHG) mobile app caters to the travelers’ different needs across their journey

CONVENIENCE | CROSS-SERVICES

CONVENIENCE | OMNI-CHANNEL

Airbnb offers tools on mobile & Apple Watch for travelers – as well as for hosts. Similarly, HomeAway offers innovative tools for hosts, recognizing that apartment sharing success depends on the quality and variety of rentals.

Trend #3: Social

The rise in social networks has created a new sharing economy, where people are interested in, and in buying from, other people whom they don’t necessarily know. Consumer also trust other consumers’ opinions, more than they trust brands. Competitors increasingly turn to incorporate social media in their tactics, whether by managing platforms or by incorporating the reviews into the site (so that the consumer will not look elsewhere).

TREND #3: SOCIAL

Hotel reviews are tremendously important when it comes to choosing a hotel. According to TrustYou, Travelers are 3.9 times more likely to choose a hotel with higher review scores when the prices are the same

SOCIAL | REVIEWS

When hotel prices are increased for hotels with better review scores, travelers are more likely to book the hotel with the higher score even when itcosts more. 76% of travelers were willing to pay more for a hotel with higher review sco- res, when asked explicitly.

SOCIAL | REVIEWS

A 2013 PhoCusWright poll found that more than half of consumers do not make a booking decision without reading reviews from others.

SOCIAL | REVIEWS

Hotels today embrace customer reviews, recognizing their importance to the customers, and thus enabling the customer to complete its journey without leaving the site.

SOCIAL | EMBRACING REVIEWS

Marriott displays “Marriott Verified Reviews”

SOCIAL | SHARING ECONOMY

Airbnb had changed the accommodation industry, and is a symbol of the “sharing economy”– peer to peer accommodation. The company reports 353X growth in summer travel, in 5 years.

INTEGRATION ALONG THE PATH TO PURCHASE

In order to achieve loyalty, a company must go back to the parameters that drive consumer decisions – and offer an added value for at least some of them:

Better value for money – additional night for free, free upgrades etc.

Personal, outstanding service – self service, concierge, personalized perks, customized offers etc.

Convenience throughout the travel lifecycle – order, check-in via app, ordering via mobile, etc.

VFM | NEW PRICE PARADIGM

HotelTonight, an app launched in 2011, today has 11 million users in almost 30 countries. The app helps cover for hotel vacancies – while saving consumers money.

In the “opaque“ model, certain elements of the service, including the identity of the travel service provider, are not disclosed to the consumer prior to making a reservation.

Priceline.com is a leader in the „opaque“ travel reservation

VFM | “OPAQUE” PRICING

Expedia makes opaque accommodation room reservations

available on its principal website under the name „Expedia

Unpublished Rates“

VFM | “OPAQUE” PRICING

VFM | NEW LOYALTY PROGRAMS

Starwood has integrated Apple‘s Passbook

Pre-stay: photos, hotel address, confirmation number

Upon arrival: notification upon check-in with the room number

Upon departure: survey.

Guests booking with IHG in one of more than 50 key destinations across the globe will be able to use Stay.com to research and plan their travel, and create personalised travel guides to share with friends.

VFM | USEFUL CONTENT

Best Price Guarantees are common on OTA and Meta-Search engines; but they are now also penetrating the direct sales channel (by hotels).

VFM | BEST PRICE GUARANTEE

Orbitz: Refer a friend - When friends join, they‘ll get a $25 promo code for their first hotel stay. You‘ll get $25 in Orbucks once they complete their first hotel stay of $50 or more.

VFM | REFERRALS & LOYALTY

The relationship between the OTAs and hotel operators has been the subject of wide debate in the industry. OTAs have aggressively focused on hotels to provide a higher share of their re- venues as the commission from selling flights has declined, and they have tried to attract consumers by reducing the cost of booking as much as possible. However, industry regulation (including self-regulation) has leveled the playg- round for hotels, and they are now free to offer best price guarantees via their websites. In addition, hotels are imitating OTAs and are offering more cross-services, such as car rentals and airline tickets.

OTAS VS. HOTELS

Source: Schieber Research, Deloitte, Google Trends

In Sep. 2015, Google announced some changes to how it markets and distributes hotel inventory, making it easier for hotels to list their properties directly on its site — and to collect leads seamlessly on mobile devices —while skipping middlemen like online travel agencies (OTAs) and other metasearch sites.

OTAS VS. HOTELS

http://www.google.com/ads/hotels/getstarted/index.html

In conclusion, identify any key area where

you are able to provide added value to the

traveler across the path to purchase,

whether by personalizing, providing the

best instant service, offering better value

for money, saving time or providing a

stress-free experience to consumers, or

connecting them to other consumers. Then,

decide which tools or devices will enable

you to respond to these needs across the

traveler’s path to purchase.

For more details, please visit us at www.carmelon-digital.com

Thank You!