UNBREAK THEFRAGMENTATION

The hotelier movement

toward...

EVP Global Enterprise Sales & Business

Development

David Chestler

…the single

screen.

David ChestlerExecutive Vice President, Global Enterprise Sales & Business Development

▪ 27 years in the travel technology industry

▪ First co-chair of HTNG’s Software Resource Team

What we will cover today

How the purchase of travel has evolved

The integrated

guest experience

The new challenge for

hoteliers

Hotel of 2020

The rise ofa new

economy

How tech-ready are your guests?Here’s how ready they are in Australia!

Source: Roy Morgan Research; 12 months to June 2016

Source: Roy Morgan Research, 12 months to June 2016

And where are you?Be led by your guests and their experiences, not your own

How we purchase travel has evolved

Have we come full circle?

It is so much work to be a hotelier today...

The challenge

Endless channels to

reach guests

Bookings now online and

mobile

Countless systems

to manage

MissingREVENUE

LosingMONEY

WastingTIME

The new need…

to be everywhere.

Mobile’s share of online bookings is on the up

Source: “Travel Flash Report”, Criteo, 2016

Give guests no reason to abandon youPatience is a thing of the past

Source: “The business value of User Experience Design”, PointSource, 2016

UX is part of the guest experienceLoyalty and satisfaction can start on your website

Source: “The business value of User Experience Design”, PointSource, 2016

The challenge

Endless channels to

reach guests

Bookings now online and

mobile

Countless systems

to manage

MissingREVENUE

LosingMONEY

WastingTIME

Greater reach, greater revenueReservations through SiteMinder’s Channel Manager

by number of channels per hotel, 2016

Don’t forget about direct bookings...

Friend or foe?Beware of the Trojan horse

▪ OTAs are buying other OTAs

▪ OTAs are buying meta sites

▪ OTAs are buying hotel management systems

▪ Meta sites are buying OTAs

Remember

▪ Direct may not always be your least expensive channel, but you own the guest and the data

▪ OTAs and meta sites are merchandising much better than hotels on their own direct websites

“No data, no relationship.”Charlie Osmond, CEO, Triptease

The state of the European hotel market

Independents will contribute 56% of all hotel rooms in 2017,

a drop from 58% in 2013 with chains growing 3x faster

OTAs represented 71% of online gross

bookings in 2015

2-in-3 hotels expect to increase direct distribution

over the coming year

Sources: “Independent Lodging Market Report”, Phocuswright and h2c co-sponsored by SiteMinder, 2015

The US: Bigger but story is much the same

30% of US hotel rooms belong to independents

OTAs will represent 52% of online gross

bookings by 2017

67% of all hotels expect to increase direct distribution

over the coming year

Sources: “Independent Lodging Market Report”, Phocuswright and h2c co-sponsored by SiteMinder, 2015

The challenge

Endless channels to

reach guests

Bookings now online and

mobile

Countless systems

to manage

MissingREVENUE

LosingMONEY

WastingTIME

A common need for technology to take control

Sources: “Independent Lodging Market Report”, Phocuswright and h2c co-sponsored by SiteMinder, 2015

CHANNEL MANAGER

PROPERTY MANAGEMENT

SYSTEM

INTERNETBOOKING ENGINE

MOBILEWEBSITE

Usage across Europe and the US

The information age has given rise to the Desire Economy

“Authenticity is what the independent sector can own and the brands can only follow.”

Will Ashworth, Managing Director, Watergate Bay in Cornwall

Independents v chains, 2000-2015

Source: “Comparison of independent and chain hotels performance 2000-2015”, STR, 2016

“Exist to create an integrated guest experience.”Matt Luscombe, Chief Commercial Officer - Europe, InterContinental Hotels Group

The personalised experience, from end-to-end

Become more hospitable online

Engage with your guests during

discovery, before they purchase

Extend that hospitality at your property and own your experience

Guest experience meets the Internet of Things

Automation, from the home to the hotel room

Sources “Echo & Co. to hit the home automation market”, Statista Digital Market Outlook, Gartner, 2016

Leverage location data

Think…

• Guests• Employees• BLE tags• Everything

ROI

• Improved GSS• Increased guest experience• Increased F&B revenue

Room service trays

Think... ROI

• Employee mobile device

• BLE/Zigbee door sensor• Tag on trays

• Motion sensor in room

• Door sensor

• Room service kiosk

• Improved GSS• Increased F&B experience

• Labor savings

Where is the bus?Think…

• Guest mobile phones• Smart buttons at bus stops• Radios in buses• Bus GPS devices• An Uber network• Smart displays for status updates• Guest TVs

ROI

• Improved GSS• Increased cool factor• Reduced cost – bus is

eliminated

Our industry is consolidating.It’s time your systems do, too.

Seamless integrations and

automation

Onedistribution ecosystem

Truerates and

availability

Real-time delivery of

reservations

Your hotel will still be just one piece of the guest’s complex travel booking experience

Guests are multi-screen users

Remove the friction!The shopping trolley is becoming obsolete

▪ Original disruptor Amazon still requires customers to take 13 steps to purchase – six steps if the ‘one-click’ option is used. By contrast, Facebook will soon allow users to click on an ad and make an instant purchase.

▪ Soon we will be able to find a book on Instagram, touch it, and have it delivered to our doorstep by Uber within the hour.Purchase to delivery: one step.

▪ The Desire Economy is driving the UX revolution.

Elegance issmart and simple

• Mobile-friendly UI and simplified UX• Flexible yield management• Holistic view of inventory. It’s about

visualisation

Technology that speaks your guests’ language – and yours True internationalisation means localisation

Pre-defined, pre-set intelligence

Rate parity

ASINGLE

LOGIN

Seize the opportunity: time is money!

MoreREVENUE

MorePROFIT

MoreTIME

23,000+ customers globally

160countries

200+PMS / CRS /

RMS partners

350+distribution

channel partners

500+team members

43.5 millionRESERVATIONS

US$16 billionREVENUE

What does yourhotel of 2020 look like?

david.chestler@siteminder.com@dchestlerlinkedin.com/in/davidchestler

For more great hotel content, visit:SiteMinder.com/Resources