In the article I have chosen to review this week, we learn about an increasingly popular technique that OTAs are using just now to boost their conversion rates. Inspired by the business model of designer brands, they organize private sales for their members and sell their inventory at discounted prices.
Contrary to what one may think, it is not just average packages that the OTAs sell; you can find even more upscale ones for up to 60% off. It also pays off for the OTAs, because one of these websites, Jetsetter.com, indicated its revenues increased by 30% from November to December 09.
While this may sound like good news for travellers around the world, my question is: does this trend put the luxury hotels at risk?
On one hand, it is a good thing that the packages are still sold to a minority of people (invitations only, members of the elite programme etc.); this is coherent with the exclusive distribution for luxury products.
On the other hand, beyond the accessibility restrictions, the packages are still sold at half their values - sometimes even more - and while this can reflect the difficulties that the OTA may be facing, it can also affect customers' opinion on the brand. I cannot think about the reasons why hoteliers would agree with this strategy. It does help to get rid of distressed inventory, but it suggests a situation of difficulty for the luxury hotels to sell off their products, and it raises another question: what will the customers who buy at regular fares think when they know about this pratices?
Sunday, January 31, 2010
Sunday, January 24, 2010
A NEW ERA FOR HOTEL ANALYSIS TOOLS?
This week, the highly innovative company TravelClick launched its latest market analysis and revenue optimization tool, Hotelligence360. This intelligence product follows its predecessor Hotelligence, acclaimed worldwide and already used by 40 000 global businesses.
How exactly is this product so useful and one might say, revolutionary?
Hotelligence360 is an interactive and easy-to-use platform which enables hoteliers to monitor trends and other parameters, thus enabling them to make important decisions and increase their revenues.
With the help of an alert system, hoteliers are kept informed on real time issues, threats or opportunities, and consequently, they are able to make the right decision quickly. As an example, the application gives indication on consumers’ patterns so that the hotel may decide there is a new potential segment of customers to be explored. It also compares the hotel’s performance against the one of various competitors which can raise the hotel’s awareness on unwise previous decisions etc.
To me, this tool is an incredibly wise and necessary investment to make. I reckon the purchase price is important but the opportunities arising from its use can be vital for a hotel business. In today’s unstable times, it is hard to keep up with the constantly changing hotel and tourism trends and this application is a great way to help hoteliers understand the market and make their decisions accordingly, thus maximizing their revenues.
It also intersects with my dissertation topic this year, which is about an intranet platform for hoteliers. I came to the same reasoning which says that it is now or never the time to invest in new technologies, in order to have a competitive advantage when the tourism industry picks up.
How exactly is this product so useful and one might say, revolutionary?
Hotelligence360 is an interactive and easy-to-use platform which enables hoteliers to monitor trends and other parameters, thus enabling them to make important decisions and increase their revenues.
With the help of an alert system, hoteliers are kept informed on real time issues, threats or opportunities, and consequently, they are able to make the right decision quickly. As an example, the application gives indication on consumers’ patterns so that the hotel may decide there is a new potential segment of customers to be explored. It also compares the hotel’s performance against the one of various competitors which can raise the hotel’s awareness on unwise previous decisions etc.
To me, this tool is an incredibly wise and necessary investment to make. I reckon the purchase price is important but the opportunities arising from its use can be vital for a hotel business. In today’s unstable times, it is hard to keep up with the constantly changing hotel and tourism trends and this application is a great way to help hoteliers understand the market and make their decisions accordingly, thus maximizing their revenues.
It also intersects with my dissertation topic this year, which is about an intranet platform for hoteliers. I came to the same reasoning which says that it is now or never the time to invest in new technologies, in order to have a competitive advantage when the tourism industry picks up.
Sunday, January 10, 2010
Aggregator websites or meta-search sites
I - Definition:
Generally speaking, aggregator sites are sites that gather Web content (and/or sometimes applications) from different online sources.
If we apply this concept to the travel industry, we may find what is called "travel aggregators" on the Internet. Here is a definition: "Aggregator sites run searches on numerous Web sites simultaneously, then link directly to the search results so you can purchase the fares within a click or two. The great advantage of aggregators is the ability to search dozens of airline Web sites, all at the same time, as well as one or more of the major booking sites."
II - Comparison of 2 aggregator sites:
Sidestep vs. Mobissimo
Sidestep:
This aggregator has recently merged with Kayak, but both websites still operate separately.
Its target audience is travellers who are price and time-conscious. They are looking for the best deals in a simple and quick manner. The map displayed when looking for hotels confirms this target.
The aggregator sites that Sidestep researches are the most common ones that we can find on the internet. There are no special OTAs dedicated to luxury or green travel for example, although it is possible for travellers to book luxury stays by selecting high-end hotels in the list.
Regarding the flights, it searches through 3 main flight search engines. Same goes for Cruises, car rentals etc.
Sidestep has partners at different levels: advertisers, hotel owners, affiliates etc. It shares them with its sister website Kayak.
Mobissimo:
The target audience for Mobissimo slightly differs from Sidestep. It does not just search for fares, it also is about sharing experiences with Mobishare, being part of a community of friends with MobiFriends, and browsing by activity.
The booking sites found on Mobilissimo vary according to flights, hotels, car rental, etc.
The partners for Mobissimo are its affiliates. Just now, the site is still appealing to them.
The benefits of using such aggregators is that they allow the travellers to search hundreds of possibilities in a single click: OTAs, official hotel or airlines websites, etc.
More specifically, for both this websites, the benefit is that it is very clear and simple to use. Mobissimo also offers options of community websites, which makes it even more friendly to use.
III - Travel experts' opinion on travel aggregator websites:
A panel of their opinions is here.
IV - My opinion:
I think aggregators are a great tool which has yet to become more popular than OTAs and independent websites. It saves time significantly by searching hundreds of possibilities in one click. It has a neutral objective, the same way a comparison website does, and this enables the travellers to book knowing he made the right decision and was not pushed to it.
For hoteliers, it is different than appearing on OTAs. This time, they dont need to check the rate parity as the aggregator only digs through the information found on OTAs. It is a good opportunity to be more visible on websites.
Generally speaking, aggregator sites are sites that gather Web content (and/or sometimes applications) from different online sources.
If we apply this concept to the travel industry, we may find what is called "travel aggregators" on the Internet. Here is a definition: "Aggregator sites run searches on numerous Web sites simultaneously, then link directly to the search results so you can purchase the fares within a click or two. The great advantage of aggregators is the ability to search dozens of airline Web sites, all at the same time, as well as one or more of the major booking sites."
II - Comparison of 2 aggregator sites:
Sidestep vs. Mobissimo
Sidestep:
This aggregator has recently merged with Kayak, but both websites still operate separately.
Its target audience is travellers who are price and time-conscious. They are looking for the best deals in a simple and quick manner. The map displayed when looking for hotels confirms this target.
The aggregator sites that Sidestep researches are the most common ones that we can find on the internet. There are no special OTAs dedicated to luxury or green travel for example, although it is possible for travellers to book luxury stays by selecting high-end hotels in the list.
Regarding the flights, it searches through 3 main flight search engines. Same goes for Cruises, car rentals etc.
Sidestep has partners at different levels: advertisers, hotel owners, affiliates etc. It shares them with its sister website Kayak.
Mobissimo:
The target audience for Mobissimo slightly differs from Sidestep. It does not just search for fares, it also is about sharing experiences with Mobishare, being part of a community of friends with MobiFriends, and browsing by activity.
The booking sites found on Mobilissimo vary according to flights, hotels, car rental, etc.
The partners for Mobissimo are its affiliates. Just now, the site is still appealing to them.
The benefits of using such aggregators is that they allow the travellers to search hundreds of possibilities in a single click: OTAs, official hotel or airlines websites, etc.
More specifically, for both this websites, the benefit is that it is very clear and simple to use. Mobissimo also offers options of community websites, which makes it even more friendly to use.
III - Travel experts' opinion on travel aggregator websites:
A panel of their opinions is here.
IV - My opinion:
I think aggregators are a great tool which has yet to become more popular than OTAs and independent websites. It saves time significantly by searching hundreds of possibilities in one click. It has a neutral objective, the same way a comparison website does, and this enables the travellers to book knowing he made the right decision and was not pushed to it.
For hoteliers, it is different than appearing on OTAs. This time, they dont need to check the rate parity as the aggregator only digs through the information found on OTAs. It is a good opportunity to be more visible on websites.
Saturday, January 9, 2010
Important Changes for Expedia
This beginning of year is an important time for the OTA Expedia. As well as changing its logo which is now more refined and sophisticated, the company aims at changing travelers' state of mind. In an article published on the 07th of Janueary this year, Expedia unveils its new strategy: contrary to most of their competitors, Expedia is willing to prove that their customers are confident people who can trust the site for booking a great trip at the right price. "Where you book matters" is the new tagline and its message is clear: if you book on Expedia rather than another OTA, it will make a difference.
Today's tendency from travel agencies is indeed to protect customers, probably a direct consequence of the economic downturn, and Expedia's marketing team fear that in the short term, people will believe that booking a trip is a mistake and will feel sorry. Expedia apparently wants to convey a more positive message, considering that their customers need not be protected but rather guided with their needs.
I think this is excellent timing for Expedia to implement such an important marketing change. The logo looks more serious, which serves the need to trust the site for fulfilling customers needs.
Similarly, the new optimistic message conveyed was very much needed in an industry which was severly hit by the crisis. Customers booking on Expedia do not have to feel guilty for going on trips as long as they know they got their value for money.
Today's tendency from travel agencies is indeed to protect customers, probably a direct consequence of the economic downturn, and Expedia's marketing team fear that in the short term, people will believe that booking a trip is a mistake and will feel sorry. Expedia apparently wants to convey a more positive message, considering that their customers need not be protected but rather guided with their needs.
I think this is excellent timing for Expedia to implement such an important marketing change. The logo looks more serious, which serves the need to trust the site for fulfilling customers needs.
Similarly, the new optimistic message conveyed was very much needed in an industry which was severly hit by the crisis. Customers booking on Expedia do not have to feel guilty for going on trips as long as they know they got their value for money.
My views on the Harvard Business review article “On Twitter and in the Workplace, It's Power to the Connectors”
In the past few years, and especially with the advent of Facebook and other social networks, we have been hearing about deep society changes, and especially in the workplace. Rosabeth Moss Kanter is a professor at Harvard Business School and she makes a parallel between the power distribution in the workplace and the fact to be a key link within a network.
Her theory retraces the history of our business organizations. In the past, the leadership hierarchy was vertical. This meant that power was concentrated on top and diluted as it passed down to subordinates and so on. Today, this hierarchy seems to have switched to a horizontal one as managers noticed the efficiency of distributive leadership.
No one needs to hold the entire power in their hands. Instead, “connectors” who are at the centre of groups and other networks possess information and far more power than before: they possess social capital. Because of their contacts, their career advancement may be greater than their peers who simply have the technical skills to carry out a job. The author stresses the importance of our ability to make connections and seek new contacts; this could be the way to be successful in an organization today.
With regard to this article, I think it is necessary to highlight the power of networking in the contemporary career success field. In a world where information spreads at high speed, one needs to be at the centre of it not to be left behind. Being part of a network enables us to be a link in this chain by accessing this information and passing it on to our followers. Successful business ideas were so because their creators knew that no one else had thought about it before and they knew who to reach to make it happen. This is why, along with team-working skills, I agree this is a key factor for career success.
Creating a network is not just a practical strategy to implement in that it requires more than being present on social media platforms. One needs to continuously navigate among groups to collect information and give away some more without being trapped in one.
Being assigned "formal assignments" is necessary as an employee needs to know what is officially expected from him/her, but the "connector skills" will give this same employee the opportunity to reach beyond the traditional information sources and generate ever better results.
Sunday, January 3, 2010
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