Hotels Digital Marketing Trends June 2016 - DotComHotel Belgrade 6 June 2016

HOTEL DIGITAL MARKETING TRENDSJune 2016

In Association with

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,

ReviewsTRAVELER‘S

JOURNEY

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

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,instantexperience, 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 consumersare 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 thecustomer experience

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

Focus on locationbased & connected offers

Competitors seek a share of the Sharing Economy with new models

Emphasizing reviews to support the consumer decision process

Using big data forpersonalization –“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

ConciergeNew Price

Cross-servicesParadigms

Self Service

IoT & Wearables

Reviews

Sharing Economy

Referrals

Segmentation

Customization

Personalization

Big Data

ContentPERSONAL

CONVENIANT

SOCIAL

VALUE FOR MONEY

The Path to Purchase

WHEN DO THEY BOOK?

Source: Fuel Travel Research (2900 respondents, USA)

WHERE DO THEY START THEIR RESEARCH?


HOW MANY SITES DO THEY LOOK AT?


WHAT PLATFORM DO THEY USE?


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 increasingly 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


IHG addresses business travelers with dedicated blog of travel tips

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

PERSONALIZATION | SEGMENTATION

Utrip uses an artificial intelligence platform to help travelers plan personalized itineraries


According to Traveler’s preferences, Utrip deliver personalized day-by-day itineraries withsorted combinations of hotels, sites, activities and restaurants


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


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

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.


Priceline.com and other OTAs now enable mobile wallet payment


Pay with Google Wallet

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


CONVENIENCE | SERVICE INNOVATION

iBeacon technologyBeacons 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.


Hilton Hotels app lets guests make actions as: Room selection, Check-in, special requests etc. (before and during their stay).“93% of guests saying they’ve felt satisfied or extremely satisfied with the experience.”


Marriot hotels mobile app is adjusted to variety of devices including Smart watch

CONVENIENCE | OMNI-CHANNEL

Airbnb offers tools on mobile & Apple Watch for travelers – as well as forhosts. Similarly, HomeAway offers innovative tools for hosts, recognizingthat apartment sharing success depends on the quality and variety ofrentals.

CONVENIENCE | INSTANT MESSAGING

Instant messaging platforms used by hotels: Hyatt hotels contact theirguests by using WeChat. KLM airlines contact consumers withWhatsApp.


La Quinta Hotels offers to their clients fast internet upgrade and “ReadyFor You” service – Guests get instant message (SMS/Email) when theirroom is ready.


Emoji Room Service - Aloft Hotels launched TiGi service (Text it. Get it).Guests can simply text an emoji of what they want to the hotel’s front desk andwithin minutes, the delivery is made.

"Our guests can now talk to us like they talk to each other“- Paige Francis, vice president of global marketing forStarwood Hotels

CONVENIENCE | SOCIAL CUSTOMER SERVICE

Hyatt and Hilton hotels chains have set up dedicated Twitter accounts whichprovides a 24/7 concierge services in any matter for their guests.

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 theydon’t necessarily know.

Consumer 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

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 it costs more.

76% of travelers were willing to pay more for a hotel with higher review scores, when asked explicitly.

SOCIAL | REVIEWS

SOCIAL | REVIEWS

95%

is spent reading a hotel’s

reviews prior to booking.

are read, on average

by leisure travelers.

7 Reviews 30 Min

of travelers read

reviews prior to

booking a hotel.

Source: Consumer Research Identifies How To Present Travel Review Content For Optimal Bookings // TrustYou

Review Data Has A Significant Impact On Travelers’ Booking Decisions

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”

Planely connect you with other travelers who are on the same flight, or at the same departure or arrival airports as you.

SOCIAL | NETWORKING


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 30countries. The app helps cover for hotel vacancies – while saving consumersmoney.

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

VFM | LOYALTY

Starwood Hotels offers companies the SPG (Starwood Preferred Guest) program – can enjoy discounted rates, room upgrades, late check out and more.

OTA’s VS Hotels

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 revenuesas 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 playgroundfor 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

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

Airbnb – Sharing Economy

Founded in 2008, Airbnb connects "hosts" with guests through an online platform – Airbnb.com.

Though about two thirds of the listings are for an entire home, guests have multiple options, ranging from living room couches to shared and private rooms to even castles, tree houses, and igloos.

Since Airbnb's creation in 2008, it has hosted over40 million guests across 34,000+ cities spanningover 190 countries.

Currently, there are more than 2 million listings worldwide (75% increase 2014 – 2015) with about 25% of them in the U.S.

Source: nasdaq.com

AIRBNB | SHARING ECONOMY

AIRBNB | 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.

AIRBNB: SUCESS BY THE NUMBERS

1,200,000 1,100,000

722,575 715,000 715,000 600,000

500,000 480,000

348,117

156,875

Rooms/ Listings in 2015

Source: Skift 2015 (based on company filings for all except Airbnb which is self-reported)

AIRBNB: SUCESS BY THE NUMBERS

Source: Skift 2015 (based on company filings for all except Airbnb which is self-reported)

27.68

2421.1

14.0512.6

10.09 9.878.14

3.24 2.95

Market Cap / Valuation 2015 USD Billion

AIRBNB | FOCUS ON COMMUNITY

Airbnb has a community where their users can connect with other hosts, share stories, ask for advice, and get updates. Moreover, they offer loyalty Program which includes an incentive for members to book a holiday through the website or to host.

Hotel chains are beginning to recognize to the potential threat of the sharing economy, and particularly Airbnb, especially ever since Airbnb had announced that it will try to attract more business travelers – the bread and butter of many chains.Main strategies used by hotel chains:

HOTELS RESPOND TO AIRBNB THREAT

Provide a Better Experience

•Utilizing the same competitive tactics designed to compete with OTAs

• For example, focusing on the entire experience; incorporating loyal programs; digital check ins; concierge services; etc.

•Offer budget stays –with hotel amenities.

Leverage the platform

•Apartment rental platforms provide another source to drive visits to the hotel’s website.

•Hotels may choose to target specific segments such as families through this platform.

Differentiation

•Hotels might actually want to leverage that feeling of ex-territory instead of considering it as a disadvantage.

• In addition, with vacation rentals, hotels should emphasize the amenities, trust and security that they offer the guests.

M&A

•Hotels and OTAs have turned to deals in order to win a share of the vacation rental market – such as Expedia’s acquisition of HomeAway or Hyatt’s investment in OneFine Stay.

Hospitality companies are targeting the entire trip, aiming to accommodate the various needs of the traveler. Through this, companies can offer a better experience and more convenience, and they can also find new growth.

One of the key technologies for companies in this regard is the smartphone: Hilton, for example, considers the smartphone as the consumers’ “remote control” for the entire travel experience.

In this field, OTAs have taken the upper hand, since they have planned the trip (rather than the accommodation alone) from the start. However, major hotel chains have already stated that they are concentrating on the traveler’s entire trip as well.

Airbnb has said in an interview to Fast Company in 2014, "Our business isn't the house - our business is the entire trip.” Indeed, the company is well positioned to leverage its community to offer additional peer-to-peer services.

EVERYONE’S GOAL: “ENTIRE TRIP”

CURRENT COMPETITORS’ FOCUS AREAS

Business Travelers

Families

Individuals

Airbnb

HomeAway

Hotel Chains

Boutique Hotels

Kid & Co.

Millennials Older Travelers

Millennials Older Travelers

OneFineStay

What hotels will look like in the near future…

THE HOTEL OF THE FUTURE

https://www.youtube.com/watch?v=qjWQ1sDhc-8&feature=youtu.be




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.

Keep up with industry trends and create a relevant action plan in order to provide valuable 'up to date‘ services to your clients.

CONCLUSION

Thank You!

For more details, please visit us at

www.carmelon-digital.com

Hotels Digital Marketing Trends June 2016 - DotComHotel Belgrade 6 June 2016

Travel

Transcript of Hotels Digital Marketing Trends June 2016 - DotComHotel Belgrade 6 June 2016