big data marketing - hftp · company profile: ts&c •founded in 2005 in munich •partner of...

Big Data Marketinglike the OTA’s

Dr. Michael ToedtCEO, TS&C GmbH

dailypoint.com

#dailypoint

1© Michael Toedt, TS&C - 2015

Company Profile: TS&C

• Founded in 2005 in Munich• Partner of leading hotel

societies• 30 employees• 800 hotel clients• dailypoint Big Data Marketing

and CRM Software• Consulting • Lecturer• Researcher• Author

2

PIONEERs IN BIG DATA© Michael Toedt, TS&C - 2015

Why we are here?

2015: Only 24%of all bookings are

direct bookings

Huge negative effects on profitability!!!


WHY ARE OTA‘S SO SUCCESSFUL?

The question to answer:


Why are OTA‘S so successful?

Amazon started 1995

John Bezos vision:

Talking to the right people, at the

right time and offering the rightproducts.

Today: 53% of all online shopping starts at Amazon

Google 36%, eBay 7%


Why are OTA‘S so successful?

• Amazon was never a book store – it was a Big Data company from the beginning on!

• OTA’s are no Hotel booking platforms, they are data driven companies!

• Hotel companies regard themselves as hoteliers. The hotel is just the product!

Hotels must be guest centric,data centric to become successful again!


The success formula

Big Data companies do not ask, they listen.

They listen to the data!

• What does a customer buy?buying patterns, interests, booking frequencies, purchasing power…

• What does a customer say?Social web: Facebook, evaluation platforms…

• What is a customer doing?open emails, click on links, visit website, which pages…


Cleaning

The concept of Big Data

Collecting Analyzing Acting

In a living & learning environment


Big Data

• OTA’s know exactly who their customers are!

• OTA’s do not explicitly ask

• OTA’s implicit what the customer wants

Hotel companies who ask their guests what they want showing their

data impotence!9© Michael Toedt, TS&C - 2015

Big Data marketing – simplified

COMPLAINT-M.

RE-TARGETING

MARKETING AUTOM.

ANALYTICSWEB

EMAIL

Res.System

QM$ VALUE €INTERESTS


The Hotel Business

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SALES

Loyalty

Lettershop

Concierge

ComplaintQM

Up-selling

Html Conf.

E-directory

CRS

App

facebooktwitter post mail

emailsms

CHANNELStripadvisor

Google+

CO

RE

PR

OC

ESS-

M.

OTH

ERS

Wifi

Smart TV

Hotels run about 15 different Systems with relevant guest data!

WhatsApp

POSPMSFOSCIS

CMS

IBE

Table Res.

Shop

Log Files

Vouchers

Forms

Extra-net

Loyalty ENL

WEBSITE

© Michael Toedt, TS&C - 2015

Hotel status quo

COMPLAINT-M.

RE-TARGETING

MARKETING AUTOM.

ANALYTICSWEB

EMAIL

PMS,POS …

QM

12

NO CONNECTIONS


Powerfull data locked in different systems

but not usable at all

THE RESULT


BIG DATA IT

A new IT environment is needed!


Why a new IT-structure?

The 5 characteristics of Big Data:

• a huge amount of data Volume

• handle many different sources Variety• processing much data in real-time

Velocity

• cleaning data Veracity• linking and tagging data throughout the

universe Value15© Michael Toedt, TS&C - 2015

Big Data IT-structure

THE HEART

MIDDLEWARE

BIG DATA MODULES

Master Data Management (DQM)

Big Data Warehouse

Business Intelligence

CampaignManagement

Quality Management

OPERATIONAL LEVEL(EXISTING)

PMS WEBPOS EMS … …

BIG

DA

TA IT STR

UC

TUR

ECOMMUNICATION CHANNELSEmail – Website – Social Media – App – Offline …


Big Data examples

Smart Couponing:

Turn lookers into bookersNewsletter subscribers who haven‘t booked within 4 weeks receive a 5 % voucher, valid 4 weeks on the hotel website

Result (within 14 months):

358 direct bookings; 990 nights

Distribution costs: 3.07%


Big Data examples

Smart Couponing:

Booking ReminderPeople who haven’t booked a stay within the last 12 months receive a $ 40 voucher, valid 4 weeks on the hotel website

Result (within 14 months):

47,210 direct bookings; 139,079 nights

Distribution costs: 5.31%


Retargeting


Pre-Stay: Revenue driver

The more a customer knows about a

hotel, the more he spends!

Results for a resort hotel (avg. Length of stay: 3,8 days)

+ 21 % F&B Revenue

+ 28 % Other Revenue

+ 17 % Total Revenue


WHY IS COMMUNICATION FOR HOTELS SO IMPORTANT?

Big Data: Evolution of Marketing


Loyalty

Hotel loyalty model

Satis-faction

Time

Frequency

Media Channel

The influence of communication

on loyalty: 11 %© Michael Toedt, TS&C - 2015 22

Why is communication so important?

• Location based product: guests

have to pass by to remember your hotel!

• Small marketing budgets – no

brand campaigns reminds the guest about his experiences

• Communication-Overload – If you

don‘t communicate, the customer forgets you!


Remember!

• If a guest stays 3 nights at your

property, he is 362 days on his own.

• Without communication, no

remembering effects are generated

• No remembering effects mean less bookings!


Communication frequency

OTA‘s have learned their lessons!

They send 2 to 5 newsletters per week, some even daily!

Be cautious: Quality Matters


Content marketing

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We are all different!

No target groups any more.

Each guest is its own target!

Micro-Segmentation


The world of OTA communication

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Communication overload

Need to create

remembering effects

Raise

communication frequency

Deliver

relevant information

Requires a

big data guest profile

Content marketing

capabilities

Marketing automation

Loyaltyincrease booking

frequency


BIG DATA FIRST OF ALL:

CONCENTRATE ON STRUCTURED DATA


Big Data marketing – simplified

COMPLAINT-M.

RE-TARGETING

MARKETING AUTOM.

ANALYTICSWEB

EMAIL

PMS,POS …

QM$ VALUE €INTERESTS


Don‘t become the next Kodak!

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It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change! Charles Darwin


http://news.doddleme.com/equipment/kodak-sells-its-film-and-imaging-businesses/

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„Knowing is not enough; we must apply. Willing is not enough; we must do.“Johann Wolfgang von Goethe


TS&C GmbH

[email protected]@MT_TSC #dailypoint

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