Online Strategy for Rentals & Resales

ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention

Online Strategy for

Rentals and Resales

ModeratorJohn Locher, Locher and Associates

SpeakersErik Hovanec, President & CEO LeisureLink, Inc.

Hansen Hunt, Online Market Manager ResorTime.com

Kristin Intress, CEO InnLink

Jason Tremblay, CEO Sell My Timeshare Now, LLC

ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention

Choosing Resales and Rental Solutions

• Consider every option-use many

• Exposure and results

• Ease of vendor relationship

• Attention & service

• Commissions

• Transparency

• Reputation

• Respect and involvement in your industry


Online trends

• International travelers

• Youth movement

• Social booking

• Service UVP


Faster

•Search

•“Specials”

display

Higher

•Loyalty

•Conversions

Stronger

•Lifecycle

marketing

•Use of data

(analytics)

Altius FortiusCitius


Thank You!

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in the back of the room.

•Download presentations on the mobile app at

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Online Strategy for Rentals & Resales Perception vs. Reality

Erik Hovanec, LeisureLink

Hansen Hunt, ResorTime.com

Kristin Intress, InnLink

Jason Tremblay, SellMyTimeshareNow

Moderator: John Locher, Locher & Associates

ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention


Agenda

• Some facts about online lodging markets

• Some facts about rental guests

• A decision framework

• Tricks of the Trade



Overview of Online Lodging Markets• Why rent in the open

market?

• Fragmented… and getting more so

• Brutally competitive / Overcapacity most of the time

• If you don’t know what you are doing, it can be very frustrating



Agenda







Who Are These Rental Guests?• Normal people looking for

“lodging” (i.e. a hotel…)

• Opportunity to introduce them to your property

• Generally new to Timeshare…. but “Timeshare” has negative connotations to them

• Your opportunity to wow them!



Agenda







A Decision Framework, Part 1

• How committed are you?

• Single biggest determiner

of success or failure

– Commitment can fill your

rooms

– Dabbling will result in

failure

• Must decide if you really

want to jump in… or don’t

waste your time



A Decision Framework, Part 2

If you commit, you will

need:

•Dedicated, professional

team!

•Real levels of inventory

•“Play the game!”



Agenda







Tactical: Tricks of the Trade• Great merchandising is a must. [Duh…]

• Sell the inventory the way consumers want to buy it (“nights”, not the way the industry wants to sell it (“weeks”)

• Market sets the rate…. Not you

• Promotions, Promotions, Promotions! -- who pays retail anymore?

• Focus on placement!...

• Placement = money



Thank You!








Marketing Timeshare Rentals OnlineMarketing Timeshare Rentals Online

Hansen Hunt,

Online Marketing Manager

ResorTime.com

Hansen Hunt,

Online Marketing Manager

ResorTime.com



Marketing Timeshare Rentals Online



Why do you need to be online?Why do you need to be online?



Where do you need to be online?



Most Important Web Presence… Search Engine



How do you do all of this?



Thank You!








Committed but Confused


•• Are you Here?Are you Here?

• You are Here!

• Where do I go next??


Are you Here?


• Are you searchable?

– Must be found to be booked (SEO/PPC)

– How are you being found?

• OTA’s1-6 book at OTA

• GDS400,000 travel agents World Wide

• Portals/Aggregators1000’s


Are you Here?


• Are you bookable?– Must be useable to be booked (Website,

Facebook, Mobile)

• Easy to Use Book Now Book Now button

• Personalizedpreferences, add-ons

• Measurabletrack your ROI, conversion rates, know where you lost them in the process to capture new opportunities

You have 4You have 4--7 seconds 7 seconds

to provide to provide

the solution the solution

your guest your guest

is looking foris looking for


Are you Here?


• Are you available?– Must be able to talk with your future guest

to sell (front desk)

– Who are they calling?

• Do you always pick up the phone2AM?

• Do you have time to sell owners checking in, asking questions

• Do you up-sell11% higher ADR in the call center

You never get a second You never get a second

chance to sell tonightchance to sell tonight’’s s

inventory. People still want inventory. People still want

to talk to people.to talk to people.


ECO System

PMS

System

CRS

Provider

Wholesaler

Extranet

Direct

Connects

Pegasus Sabre

Travelport

Amadeus

IBE

Voice

Channel

Manager

Revenue Management and

all property level interfaces

eMarketing


ODDODD




• Are you Here?

•• You are Here!You are Here!

• Where do I go next??


You are Here?


• Channel Mix (Cindy Estes)

– How much should you expect from each

channel?

• Each channel has it’s purpose

• Don’t compare yourself to your

neighbor, they may be wrong

• Maximize your mix

Unless you are running at Unless you are running at

100% occupancy at the right 100% occupancy at the right

rate, yourate, you’’ve left money on ve left money on

the tablethe table


You are Here?


• Each Channel has it’s purpose

– What is growing?

• Mobile, Facebook, Branded booking engine

– What is shrinking?

• OTA’s, GDS

– What is staying the same

• Voice, transient


You are Here?


• Don’t compare yourself to your neighbor, they may be wrong

– Every segment is different• Timeshare, Condo, Rentals

– Every destination is different• Fly to, drive to, Rural, Urban

– Every product is different• Amenities, near by attractions

Metrics are tools to guide Metrics are tools to guide

you in the Darkyou in the Dark……

••Is your metric accurateIs your metric accurate

••Is your metric consistentIs your metric consistent

••Is your metric measurableIs your metric measurable

ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA World 2012, Annual ConventionARDA World 2012, Annual Convention

Channels reviewed in StudyBrand.com Marriott.com, Starwood.com, hotel’s own web site

CRS/Voice 1-800-hiltons, 1-800hotels, 3rd parties

GDS Travel agents (Sabre, Galilieo, Amadeus, Worldspan)

OTA Online travel agents

Property

Direct/OtherWalk-in, group/rooming list, employee/discount, contract, Passkey

Copyright 2011 Smith Travel Research

DISTRIBUTION STRATEGY ISSUESDISTRIBUTION STRATEGY ISSUES

•Online Consumer Behavior

•Cost Evaluation by Channel

•Market Resource Allocation

•Optimal Channel Mix



Hotel Profile: Small

Chain/Independent

Major Urban

Location

Room Count 400

Occupancy 68%

ADR $135

Total Room Revenue $13.5M

Business

Type

Room

Demand

ADR Revenue Share of

Demand

OTA 25,000 $110 $2.75M 25%

Corporate 20,000 $135 $2.7M 20%

Group/ meetings 30,000 $135 $4M 30%

Brand.com 20,000 $165 $3.3M 20%

Citywide/ Other 5,000 $140 $700K 5%

Costs of Distribution-Case Study



Optimal Channel Mix Optimal Channel Mix Requires analysis of demand and competitive market situation:

more than a simplistic exercise to remove the lowest profit channels


Demand Share by Channel for Total USYTD June 2009, 2010 and 2011 (Percent of Total Room Nights)

YTD numbers available

OTA, Brand.com, and GDS up, Prop Direct down, GDS flat



Similar to Annual 2010 numbers, with some exceptions

Voice & GDS high at top, OTA & Direct at bottom, Brand in up/mid

Channel Demand Share by Scale for USJune YTD 2011 (Percent of Total Room Nights)



ADR by Channel for Upper UpscaleAnnual 2009 & 2010


ADR by Channel for UpscaleAnnual 2009 & 2010



Channel ADR by Location for USAnnual 2010 (Percent of Total Room Nights)



You are Here?


• Maximize your mix– Understand how to sell to your guest

• What are they looking for and is your process easy, efficient, safe, bookable?

– Are you managing your inventory effectively?• Channel management, Rate Setting, Packages

– Are you managing in fear?• I don’t understand so I’ll close out channels

• I think OTA’s are too expensive so I’m not going to sign up

• I think the guest can send me an email because it’s more personal and I could sell them on a timeshare

• I think call center’s are too expensive so I’ll answer the phone myself

Every channel has itEvery channel has it’’s place s place

and value. Use them, donand value. Use them, don’’t t

let them use youlet them use you




• Are you Here?

• You are Here!

•• Where do I go next??Where do I go next??


Where do I go next?


• Be committed

• Be open to new approaches out of

your comfort zone

• Find a partner that will guide you

and provide recommendations

• Don’t wait till tomorrow to do what

you should do today.


Thank You!








The “Long Tail” describes the strategy of selling a large number

of unique items with relatively small quantities sold of each.

This concept can also be applied

in online marketing.

Long-tail Online Resale Strategy

Examples of long tail marketers: Amazon, Netflix, Travelocity, Ebay


HOA/Mgmt. Co/Sold-out Resort Resale

(no active sales – no perceived conflict)

• Marketing Driven Resale

– Onsite sales teams can “work” existing owner

base, drive tours and move more volume at a

higher price

• Market Driven Resale

– External brokers and online resellers

– Price is determined by supply and demand

dynamics

– Most resale buyers are “shopping” online

HOA vs. Developer Resales


Developer (in active sales) Resales

– Can create internal listing team

• Can resell front-line or make listings available to

external reseller(s)

– Recommend several timeshare resellers

• Can provide list of ARDA resale companies

– Vett and recommend one “Authorized Reseller”

• Allows you to consolidate resale inventory

• Gives greater visibility into results and owner service

• 3rd party relationship mitigates internal conflict with

Sales and marketing

HOA vs. Developer Resales


Quotes I’ve heard from Industry CEO’s

“No one wakes up and decides to buy a

timeshare”

“Timeshare will never be a sought good”

“The internet will never become a

timeshare vending machine”

“We need to outlaw resales”

Let’s First Dispel Some Old-school Thinking


This

Thinking

Drives Me

Crazy!!!


There is staggering demand and traffic

online for “timeshare”

People ARE

Actually

Waking up and

Deciding to

buy timeshare!

Here’s the Good News for Resales:


Source: Google

HOW? A Lesson in Keywords

823,000 people Googled “timeshare” last month alone

“Fat-head” Keywords

ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionThe Keyword Search Demand Curve

Highest Competition

Lowest Conversion Rate

Lowest Competition

Highest Conversion Rate

ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionThe “Long-tail”

Example: “st john timeshare”

ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionThe “Tail” Just gets Longer and Longer


Understanding of keywords

1) Fat-head: Most generic keywords with the most

traffic in your niche. Each niche may be very

different in terms of quantity. We view the “fat-

head” as any keyword that brings us 500 or

more visits per month.

2) Chunky-middle: Any keyword that brings 25

visitors or more

3) Long-tail: Keywords that deliver less than 25

visitors per month.

Fat-head, Chunky-middle, Long-tail…WHAT??


Analytics data from January 2012

SellMyTimeshareNOW.com

A Resale Success Story Case Study

292,406 people came from an

organic “keyword search”


1 thru 10 of 117,072 keywords that drove 292,406

organic visitors

“Fat-head” Keywords (500 monthly vists +)


The top 21 of 117,072 keywords delivered

38,162 visits or 13% of January traffic

“Fat-head” Continued…

It’s the 80/20 rule upside down


Only the top 628 of 117,072 keywords queried in

January delivered over 25 visitors for the month(.05%)

…and the Long-tail begins

Long-tail

99.5% of keywords queried

in January delivered less

than 25 visitors per

keyword but 87% of the

total organic search traffic

ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention117k Keywords drove 339k Unique Visitors

Which drove 20k conversions


Average cost of buyer lead:

$3.00

– Web savvy – the “next generation timeshare

buyer”

– Inbound and unsolicited

– Strong behavioral intent to purchase or rent

Long-tail Online Marketing Efficiency


– There is strong online interest in timeshare (rental and resale)

– Prospective timeshare buyers and renters are using the internet to do their shopping

– Those prospects know what they are interested in as reflected by their keyword searches

– The secondary market is growing and will continue to grow

– Most of that growth is occurring online

– A robust resale program must include an online component

– You don’t have to do it yourself

In Summary


We are now successfully partnering with numerous

developers and HOA’s on resale

– Can provide dedicated team trained on your

resort/product to field resale inquiries

– Offering owners choice of for-sale-by-owner

advertising (“FSBO”) or full service commission

based listing service (No “up-front” fee)

– Resale and Rental solutions for HOA’s and

delinquent/foreclosed inventory

– Listings are non-exclusive

Owner Services

It

Works!


Its time to give them one

Don’t be this guy

Your Owners NEED a Resale Solution

Online Strategy for Rentals & Resales

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