michelle rosinsky - hotwire

. . .

Strategic Revenue Management Leveraging the Online Channels

Michelle Best Rosinsky

Senior Manager, Hotwire

Expedia® Partner Services Group

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Why Revenue Management is more important than ever Online Distribution Strategy Matrix Tips to Build Your Online Strategy

IRELAND HOTEL HEADWINDS 1. Weakening external and domestic demand

2. Unfavourable foreign exchange movements

3. Overcapacity

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STRATEGIC OPPORTUNITY TO GROW REVPAR Ireland ADR and Occupancy 2004-2011 YTD through August

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Source: Horwath Bastow Charleton

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Pri

ce

Booking Window

STRATEGY MATRIX

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1. Build an international strategy

2. Play the booking curve

3. Plan to fill your gaps

4. Leverage opaque channels

TIPS TO BUILD YOUR STRATEGY

Build an international

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STRATEGY

A Presence Around the

World

Local Language

Translation

New Demand to Your Hotel

Multiple Currency Support

ONLINE CHANNELS PROVIDE INTERNATIONAL REACH…

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0.9% Italy

1.4% Japan

1.6% France

1.8% Germany

1.8% UK

2.6% US

2.8% Canada

India 8.3%

China 9.0%

World economies are rebounding at different rates

Source: European Tourism 2010, Trends and Prospects, Q3/2010, European Travel Commission

… AND OPPPORTUNITY

You can optimize your RevPAR through a

targeted international strategy

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Expedia.com

Expedia.co.jp

SAME HOTEL, DIFFERENT SITES

Develop an international strategy that meets your needs

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Play the

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booking

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26% 31% 43%

3.0 2

1.5

€€€ €€

€

> 1 month 1 week - 1 month < 1 week

ADR

LOS

Share of

Rooms Day

of

Arr

ival

AN UNMANAGED BOOKING CURVE FORCES ADR DOWN

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1. BUILD YOUR BASE

2 .OPTIMIZE RATES/OCCUPANCY

3. YIELD RATES UP

Day

of

Arr

ival

> 1 month 1 week - 1 month < 1 week

> 1 month 1 week - 1 month < 1 week

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26% 31% 43%

> 1 month 1 week - 1 month < 1 week

ADR

LOS

Share of Rooms

Day

of

Arr

ival

R

evPA

R

1. BUILD YOUR BASE

2 .OPTIMIZE RATES/OCCUPANCY

3. YIELD RATES UP

Develop your own high yield strategy based to maximize the

booking curve

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Fill the

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G A P S

Group Wash

Month End Push

Sundays Cancellations

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Christmas

Short Lengths of Stays

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BE SURGICAL AND TARGET NEEDS

Weekend Promotion

Christmas Value Adds

Packages Base Business

Opaque Last Minute

Have a 365 day strategy and target your need periods to

maximize revenue

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Leverage

OPAQUE

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BUNDLED BOOKINGS ARE VALUABLE

Higher ADR

Booking window

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Length of Stay 2x longer stays

23 days further out

$23 ADR premium

Cancel less 40% less likely to cancel

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TRUE OPAQUE CHANNELS DRIVE LAST MINUTE DEMAND

Replace last-minute group wash and

cancellations

Fill holes in weekly stay patterns

Generate business after a re-flag,

renovation or new opening

Build incremental visitors to the hotel

Secure low season sales without

advertising low rates

Build a non-refundable base

months out

OPAQUE STRATEGIES

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Opaque Package

Use packages to build your base

Use opaque to sell your last rooms

Day

of

Arr

ival

Include bundled and pure opaque channels in your strategy

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Expedia ® Partner Services Group |

1. Build an international strategy

2. Play the booking curve

3. Plan to fill your gaps

4. Leverage opaque channels

. . .

THANK YOU Go raibh maith agat

Michelle Best Rosinsky

MRosinsky@Hotwire.com

© Expedia Inc. Confidential and proprietary. All rights reserved.