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Flash Sales – the future of hotel booking

Flash Sales offer great deals for a very limited time, they can often have much tougher terms and conditions to many other offers that can make it difficult for travelers to cash-in their voucher. Yet some hotels are seeing this as a great way to promote their hotel and show travelers what they can offer.

One hotel I spoke to offered 75% off their standard rate, and this is in London – what a potentially excellent deal. But as a traveler it is really worth price shopping and seeing what rates are on the market, across traditional booking channels, to make sure it is a great deal.

Yet tapping into travelers with a budget mindset is ideal as the speed of purchase encourages them to buy faster.

A few places you can find these interesting deals include Secret Escapes, GroupOn, Living Social, Voyageprive.com and Travel Zoo. I recently attended an event organized by HOSPA – an association for hoteliers to find out more.

As a hotelier – you do need to think of what brand represents your hotel. You need to agree with the supplier a sustainable pricing model on the discount and commission the website charges. Don’t get surprised if the results don’t come in as you expect, nothing worse than planning booking based on a pure marketing promotion.

The HOSPA panel agreed that on the whole, those who bought these Flash Sales were often consumers who can afford to spend several hundred in a daily deal, making a decision in a moment.


 
Advising hotels on how to make the most of Flash Sales, Nick Stafford, General Manager of Escapes Europe of Living Social remarked: “The worst thing you can do is discount heavily to your own customers. I booked a flight and 2 days later received a discount promotion of 60% from that airline. Discounting to loyal customers is dangerous and can reduce the value of your product as they just hang around waiting for the sale,” Nick felt short changed by the airline. “Our offers are for a specific time, feeding recipients needs then and there.”

However hotels maybe trying these new forms of social and digital marketing, yet are still very behind on the online basics, TravelZoo still needs to create web landing pages for hotels that (believe it or not) still do not have websites. Then these hotels complain when they don’t get the results they need. To me, hotels need to get a grip with the basics before trying this method of sales.

The only advice these channels seem to offer to hotels is to think in advance, do not call up last minute desperate to fill the hotel. This is not last minute bookings, these are future bookings aimed at helping the quiet periods, and revenue managers should know the weeks when the hotel is usually quiet.

There are no exact figures on how much these flash sales cost, it will be anywhere between 10% – 50% commission depending on the offer, the location of the property and the brand.

I am hoping that independent hotels are offered good deals, but I get the impression it maybe more financially challenging for small independent properties.

Some immediate tips for hotels:

  • Select the right channel that markets hotels like your property
  • Identify the lowest rate you publish and can make money from
  • Build from this lowest rate, taking into account maximum commission you are willing to pay before you make a loss
  • Look at your additional services – value-adds – and see how you can create a great package offer that costs you very little
  • Get a good idea of how the flash sales members behave to identify the best price

Ryan C Haynes is VP – Marketing Communications at eRevMax and is responsible for driving all PR and Marketing activities for RateTiger and eRevMax brands globally. Ryan is based out of London and can be reached at ryanh@ratetiger.com

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Newshound: Trends and Reports – Hotel Online Distribution


The Evolution of Online Travel

Since the rise of online travel in the mid-1990s, it seems that there’s an endless well of ways to get your travel fix.  It’s projected that within the year 2012, there will be 98.3 million bookings on the Internet, which translates into major profit for online travel companies. In Mashable’s infographic, you’ll see the progression of online travel, from its roots in old electronic booking systems to the newest and shiniest deals websites. Plus, get an inside look at how users behave while on online travel sites — and where they love to go.

The 5 Golden Rules of Social Media ROI

Facebook page? Check! Twitter account and dedicated hastags? Check! Competitions, discounts and giveaways? Check! Any real, measurable and abundant ROI from social media campaigns? A recent Eye for Travel survey of APAC travel brands shows that despite 67% claiming to have deployed social media initiatives, more than half admitted confusion or inability to effectively rack and measure ROI.

A hotelier’s viewpoint on the current status of the flash sales model

Social buying/ Group buying and flash sales sites will undergo a saturation stage in their lifecycle. Many will reach the end of the road but a few strong ones will survive – albeit with some innovative add-ons to the existing business models, says Ricky Ang, vice president – Sales & Marketing, Hotel Equatorial Group.

Global business and leisure hotel rates up

Global average daily rates (ADR) for both business and leisure hotel rooms continued to climb in January, according to Pegasus Solutions’ data. Following a record increase over 2010 in December 2011, January 2012 saw business rates grow +3.8 percent and leisure rates rise +7.0 percent over January 2011, shared The Pegasus View January edition.

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FITUR 2012

The thirty-second edition of FITUR was inaugurated by Prince Philip and Princess Letizia of Spain. The official opening by the Royal Family once again shows its unconditional support for the tradeshow and, in general, the Spanish tourism sector.

I attended the event along with my colleague Cristina Hernandez. We found that the exhibition this year was comparatively smaller due to the ongoing recession and various country representations were missing. However, FITUR made their commitment clear to the online sector, web 2.0, technology, social networking and video marketing among others during FITURTECH conferences.

The discussions at the event revolved around topics like new revenue trends such as Flash sales (Groupon), Social Media booking engines, online distribution, direct xml connectivity, online reputation management and affect of the recession on Southern European domestic travel scenarios, etc.

We had a stand which kept us constantly busy. Overall it was a good show with lot of networking opportunities. Look forward to the next edition.

Pilar Sanchez Aita is Sales Manager for Spain & Portugal at eRevMax and is responsible for sales of RateTiger products in the region. She can be reached at pilara@ratetiger.com

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WTM 2011: RateTiger Updates

The recently concluded World Travel Market in ExCel London was a well organized show and one of the best in recent times. It provided good opportunities to visitors and exhibitors to do business as well as reach out to new contacts.

RateTiger was present in full force and most of our Sales Managers from across the globe descended upon London to witness this grand show. Below are excerpts from some of their feedback on the event –

Pilar Sanchez Aita, Sales Manager – Spain & Portugal says, “This year’s edition was excellent; it helped me further strengthen customer relations and gain new prospects. The main topics of my discussions revolved around new revenue trends such Flash sales (Groupon), Social Media booking engine, online distribution, the affect of the recession on Southern European markets for domestic travel, etc. RateTiger’s stand location was fantastic, which helped generate a lot of traffic.”

Ryan Haynes, VP – Global Marketing says, “This had to be the best show RateTiger has done in the 5 years of exhibiting at WTM. It was certainly the year for Technology and a year for Channel Management solutions with all global enterprises present and visible at the show. We had a busy four days and a very successful presentation on the second day delivered by Keith Povah.”

“As for the core discussions – Channel management, for the first time, was a key topic of conversation, while social media tried to reign supreme. Again the recent news and discussion surrounding TripAdvisor was not sitting well with hoteliers. Hotels are looking for tangible results from marketing and sales strategies and distribution was answering most of their questions. Many exhibitors were talking about RateTiger – some nice free marketing.”

Lilian Stjepanovic, Sales Manager – Eastern Europe quipped in, “The show was fantastic as I got to meet a lot of hoteliers from my region. Having the same stand location helps in the sense that most people know where to find us. Overall, a great show which makes a lot of business sense.”

Keith Watson, Division President – RTCorp concluded, “This year’s show was very successful. My team took the opportunity to setup many meetings with prospects we have been cultivating over the last 12 months. These went very well. We also met with some new potential customers, who liked what they saw in RTCorp. Our discussions focused around filtering shopped rates as well as better understanding price comparison websites.”

All in all, a grand show, very well organized and an event that will see RateTiger come back every year.

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ITB Asia 2011

The fourth edition of ITB Asia gave a record performance and attracted 7511 trade visitors representing 91 countries. Exhibitors from over 70 countries were represented from as far as Botswana, Finland, Croatia and Iraq as well as partner country Japan who reported an increase in business activity at ITB Asia 2011, reiterating the strength of the regional travel industry despite economic uncertainties.

RateTiger was among the exhibiting team and had a great show. I was there as part of the Asian sales team and was very glad to meet old and new clients as most people attending the show are now aware of our presence in this event. We received rave reviews about our product as well as visibility in the region.

Our discussions with hoteliers and travel fraternity revolved around the benefits of integrating with RateTiger as well as the necessity of Channel Management software in today’s time. Keith Povah, Division President – RTSuite gave a presentation on “The evolving world of hotel online distribution” which was very well received by attendees.

We had a pretty successful show and managed to create various new contacts. I look forward to ITB Asia 2012 which is expected to be bigger and better. 

Kenneth Yeo is Sales Manager – APAC at eRevMax and is responsible for sales of RateTiger products in the region. He is based out of Singapore and can be reached at kennethy@ratetiger.com
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Newshound: Trends and Reports – Hotel Online Distribution


Small Independent and Boutique Hotels – Online Marketing and Strategic Revenue Management Levels the Playing Field!

There is no online marketing and revenue management potential without the GDS. Customer buying habits dictate that there has to be that connectivity to make a reservation and receive confirmations online instantly.
http://www.wiredhotelier.com/news/154000473/4052123.html

Understanding the ‘Micro-Tripper’ Trend

The Micro-Tripper—short-term, purely spontaneous travel enabled by the flash-sale, group buying, and private-travel sale start-ups, the new leisure travel market segment is on the rise. The new social e-commerce travel companies are not intruding upon the OTA’s business but are, in essence, capturing an undiscovered new segment of the travel market that I call the “spontaneous micro-tripper”.
http://www.eyefortravel.com/news/europe/understanding-micro-tripper-trend

Indian hotel industry expected to touch Rs 230 billion by 2015: Cygnus Business Consulting and Research

The Indian hotel industry is expected to reach Rs 230 billion by 2015 with a Compound Annual Growth Rate (CAGR) of 12.2 per cent, according to a report published by Cygnus Business Consulting and Research entitled, ‘Industry Insight- Indian Hotel Industry.’
http://www.hospitalitybizindia.com/detailNews.aspx?aid=11176&sid=41