P R E S E N T E D B Y

M A R K E T I N T E L L I G E N C E , I N D U S T R Y A N A L Y S I S & S T R A T E G Y

T E A M E

Value Chain analysis

Chen Yang Lim, Clara Schuller-Delaval, Ismat Accad, Lavinia Orsi,

Çagan Koç, Nicole Hage Chahine, Sebastian Cassis

V A L U E C H A I N A N A L Y S I ST E A M E

INDUSTRY LANDSCApE:

• TheOnlineTravelAgency(OTA)industryhasfiercecompetition.

• Consumersareincreasinglyprice-drivenwhichmakesthetwo-way

partnershipbetweenhotelsandOTA’scritical.

• OTA’sareundoubtedlyexertingmoreandmoremarketinfluenceas

theirnegotiatingpowerisincreasing.

• Itallcomesdowntowhopaysthebiggestamountofadvertising

moneytorankthehighestinSERPsandthisisagameBooking.com

excellsat.

MAIN fINDINGS:

• Booking.comspendsmoreonpaidadvertisingandbecauseofthis,

it’sgettingmuchmoretrafficfrompaidsearch.(1m vs. 56 k)

• ThebrandrecognitionofBooking.comisalreadymuchhigherthan

Hotels.com.

• Also,booking.comhasmorelargervarietyandbiggerportfolio.

• ThehotelprofilesaresimplifiedinBooking.comcomparedtoa

morecomplexHotels.com. (symbols vs. sentences in bulletpoints)

• Booking.comnotonlyoffersamoreuser-friendlyexperience,italso

triestoperfectthecustomerexperiencewithabudgetforsolving

customerissuesbeforeandaftersales.

RECoMMENDATIoNS foR HoTELS.Co.UK

• DesignasimplerUXsuitableforpeopleonthego.

• OffercheaplastminutedealsthatwillallowHotelstoselltheir

unsoldinventory.

• Offerdifferentpaymentoptions.(same day bookings without credit

card information)

• Empoweremployeesbyallocatinghigherbudgetsforservice

recovery.

• Advertisetherewardsystembetter.Treatitasaseparatebrand.

Includegamificationwithforexampledifferentstagestoreachand

earningpointsnotonlyonroomsbutonfoodandbeveragesaswell.

• Offermoreaccommodationtypessuchascampingorrentingboats

tocaptureasmuchcustomersaspossible.

S U M M A R Y

T E A M EH

oT

EL

S.C

oM

Bo

oK

ING

.Co

M INBoUND

Salesandpricingagreementwithhotels,approx.15%commissions

887,000+Properties

Highernegotiationpowerduetobrandrecognition

Salesandpricingagreementwithhotels,approx.15%commissions

435,000+Properties

LessTrafficmeanslessnegotiationpower

oUTBoUND

PaymentMethods (Pay at the hotel and booking without credit card info)

Ownedreviewsystem

Youalwayshavetogiveyourcreditcardinfo,nomoreflexiblepaymentoptions

GenuineHotels.com+Expediareviews+Tripadvisorrating

opERATIoNS

Infoaboutroomsandhotelpolicy (simpler with Symbols)

Constantpricetrackingforbestavailablerateguarantee

Offervariousoptionsforaccommodationsuchasboatsandcampingplaces

Detailedinfoaboutroomsandhotelpolicy(a lot of text; less user friendly)

Constantpricetrackingforbestpriceguarantee

Moretraditionalaccommodationtypes(less choice)

MARKETING AND SALES

Paidonlineadvertising (Ads in 41 languages)

GooglePartnerforhotelsearch

Flashsaledriven

E-mailMarketing

Salesforceforhotelaccountmanagement

Lesspaidsearch/Loweronorganic

LessuseofScarcityprinciplesonthewebsite

E-mailMarketing

Hotels.comrewards

Salesforceforhotelaccountmanagement

AfTER SALES

24/7callcenter

Excellentcustomerservice (Budget allocated to employees for service recovery)

24/7callcenter

Averagecustomerservice

Collectrewardpoints

V A L U E C H A I N C o M p A R I S o N

V A L U E C H A I N A N A L Y S I ST E A M E M A R K E T R E S E A R C H

BooKING.CoM BUYS MoRE pAID SEARCH“GoogleHotelFinder”referencesthehotel’spriceandBooking.com’spriceofthehotel.

BooKING.CoM HAS a better UX

LoYALTY pRoGRAMHotels.com™Rewards

Dailytimeonwebsitepervisitor:9:24 mins vs 6:41 mins

Dailypageviewspervisitor:7.20 vs 4.78

V A L U E C H A I N A N A L Y S I ST E A M E

USD 2.61 billionspentondigitaladvertisingin2015 Googleadvertising2

PricelineGroup USD 1.5B Expedia Inc. USD 1.0B

MainpricereferenceonGoogle

Booking.com Hotels.com

57 418SITE RANKING

IN UK

MoRE ADVERTISING

SpEND

MoRE pRopERTIES

(ESTIMATED)

1 vENTurEbEAT.COM/2015/11/05/bOOKINg-COM-LArgEST-gOOgLE-ADvErTISEr-fACEbOOK-HASNT-CrACKED-THE-CODE-ON-DIrECT-rESpONSE/2 wSj.COM/NEwS/ArTICLES/Sb10001424052702304819004579487931119016044

W H Y I S B o o K I N G . C o M W I N N I N G ?

887,000 435,000

V A L U E C H A I N A N A L Y S I ST E A M E

H o T E L S . C o M V A L U E C H A I N B E f o R E & A f T E R

AfTER SALES

Manycustomerservicecomplaints

Rewardsbasedonnightsstayed

Allocatemorebudgetforcustomerserviceforhighercustomersatisfaction

Pointsrewardsbasedonmoneyspentwhenbookingaswellasthenumberofreviewsshared

MARKETING AND SALES

LesspaidadvertisingSalesforce Lastminutedeals

InvestmoreinpaidadvertisingIncreasesalesforcetosignadditionaldeals Offermoreflashsales

opERATIoNS Notfullypersonalizedonlineuserexperience SimplifydesignforhotelfeaturesandoptionsReal-timegeolocationbasedoffers

oUTBoUND LesspaymentmethodsoptionsthanBooking.com.

Offermorebookingwithoutcreditcardinfoforsamedayreservations

INBoUND Lesspropertiesandaccommodationtypes

Increasedaccommodationtypesandamountofproperties.

Before After

V A L U E C H A I N A N A L Y S I ST E A M E

Travelistheonlythingyoubuythatmakesyouricher.

““

A N o N Y M o U S