Hotel Distribution Strategies for the Future

#FHS2017

Andrew Zappella

Co-founder,

Head of product development @base7booking

Technology is transforming the world,
online bookings are growing and will take over

Online direct share is shrinking and indirect bookings are getting dominated by few players

Direct bookings

How do we revert this trend?

Create a balanced and sustainable distribution mix

Direct bookings

Why travelers book with OTAs

Use meta search to your advantage, but don't rely on it exclusively

• Meta search is growing fast in virtually all markets

• Consumers will always look around for the best deal

• Mobile is a key growth factor, and there are high investments in this area

Direct bookings

Focus on online direct bookings,

optimize direct booking funnel

Mixing it up more

Google, Facebook, and Linkedin

Facebook

• Optimized for travel inventory (i.e. hotel rooms)
• Reach people with travel intent
• Targeting options specific to travel advertisers (e.g.  weekend traveler, single traveler, people traveling in groups, specific travel dates, specific destination searches)

As an advertising platform for hotels

Google

• Use AdWords's search network for branded queries + destination (e.g. "Hotel Wellington", "Hotel Wellington London)"
• Use Google Hotel Ads to convert exploratory/browsing customers
• Both drive traffic and conversions to your own booking engine (but you pay per click for AdWords, and commissions for Hotel Ads)

Google AdWords & Google Hotel Ads

Linkedin

• Use targeting options to reach business travel segments
• Use it for event promotion if you have conference rooms
• Great for lead generation
• CPC/CPM models

Business travel sector

The world has shifted to mobile. I’m not sure how familiar you are with some of the stats, but anecdotally, there are more mobile devices in the world than there are people. If you’re talking about mobile technology in a mobile world, you have to take Facebook and Instagram into account.

Christine Warner, Head of Travel, Facebook

Focus on mobile

• 1 out 5 minutes is spent on platforms such as Instagram/Facebook: increase brand awareness and convert customers
• The travel experience begins before the stay itself: give inspiration, ideas
• Talk to your guests: Messenger allows guests to ask questions and connect before, during, after their stay

Focus on direct bookings

• Conversion rate optimization (+2% could translate into +30% revenue)
• Make your Internet Booking Engine (IBE) mobile first
• Keep your lowest price on your own direct booking channel
• Use tools/widgets to prevent customers from leaving to check if a price is lower elsewhere

Case studies