how can hotels gain control over distribution channels? · hotel revenue by channel hotels’...
TRANSCRIPT
How can Hotels gain Control over
Distribution Channels?
Alex Zheng
Chief Brand Architect, Plateno Hotels Group
Sep.11, 2013
Distribution Channels such as
OTAs have grown rapidly
In recent years
，
1
OTA's hotel business saw rapid growth
Global： Mainland China
： 2011H1-2013H1 OTA Hotel Revenue 2011H1-2013H1 OTA Room Night Booking
In Ten Thousand Room Night
Data Source：Travel Click Data Source：ctcnn.com
2
In Millions USD
Emerging online distribution models
Group
Buying
Last
Minute Vague
Pricing Reverse
Auctions
Hotel’s
Revenue
Management
3
4
Global：
Data source：Travel Click
Hotel Revenue by Channel
Hotels’ reliance on distribution channels
has increased
4
Web
CRO
GDS
OTA
Direct
Web—brand web site CRO—central reservations via voice, chat or email
Direct—walk-ins,direct call in
2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2
24.6% 25.3% 21.2% 25.5% 25.0% 25.8%
15.7% 16.1% 16.9% 15.4% 14.5% 14.6%
27.6% 26.8% 37.1% 27.9% 27.7% 26.6%
10.7% 12.3% 11.1% 12.2% 12.0% 13.3%
21.4% 19.6% 13.7% 19.0% 20.8% 19.6%
Mainland China：
Sales Channel by Hotel Type
Data Source：iResearch China Hotel Sales Channel Report of 2012
Hotels’ reliance on distribution channels
has increased cont'd
5
6
How should Hotels Cooperate
and Compete with OTAs?
Response,
8
In life, Brands induce different feelings
7
9
Why do consumers pay 250% higher for a
cup of Starbucks Coffee？
Treat
Myself
Good
Taste
Pretend
to be
Cool
+60% +50%
+55%
RMB 9 RMB 33
+45%
+40%
8
Economic
Price
Petty
Bourgeois
Sentiment
Social
Coffee
Culture
Brand
Feelings
Social
Status
9
Is it sufficient for Hotel Brands to just satisfy
customer’s functional needs?
When the functional needs of customers have been
satisfied,they need more …
Culture
Preference
Minds
1
2 3
Multi-industry
interaction increases
customer loyalty
Multi brands meet
various demands
Creativity –Soul of Brand
10
Characterized brands
through defining life-style
Brand
Soul
Originates from Portofino in Italy.
Abandon excessive luxury, back to pure life .
Focus on core requirements on hotel.
Respect and cherish each noble and free soul…
11
Portofino-- A Paradise for Private Enjoyment, A Harbor for Your Soul
With the core of comfortable culture
Lavande-- Experience-oriented
Boutique Hotel
12
Featuring natural fragrance, Lavande
provides a extremely comfortable resting
space with considerate 3-dimension
caring---breath, sleep and feeling.
Perfect combination of coffee
culture and hotel experience.
China's first new service model of
mid-scale boutique hotel, which
creating an elegant atmosphere of
humanity, social life and style to
free yourself.
James Joyce Coffetel
--Journey within Coffee
13
Z M AX , the FUNNEST
& trend-leading hotel in the
city
ZMAXERs are always following their own
heart, refusing constraints and pursing unique
character.
ZMAX defines new concept of hotel, and
creates Z-life style for freedom-hunters ---
ZMAXERs.
14
Strong brands leverage internet channels to
become easily accessible and searchable
Baidu...
B2C...
OTA
Qunar... •Brand.com
•M.com
•APP
Social
Media
Mobile
Channels
• Microblog
Hotels introduce customers to their own online
platforms via direct and non-direct channels
16
Data Source：7 Days
Direct Channels include website, mobile
website and APP
2012 7 Days Booking by Channel
Hotel
Offline multi-industry cooperation enhance
customer loyalty
10 Points
Integrated Membership and Points
Management Platform = RMB100
Hotel brands can offer more Value-added Service based on their
membership system
17
10 Points 10 Points 10 Points 10 Points 10 Points
Conclusion
• Strong brands conduct consumers’ purposeful decision
making in their hotel selecting process rather than solely
leaning on OTA’s recommendation;
• More comprehensive and interactive member loyalty
programmes combining with hotel’s efficient direct sales
channels will increase customer’s brand loyalty.
Q&A
What else could brand and membership
bring to a hotel ？
Thanks for your attention！