E-Commerce Strategic Plan - 101 Hotel E-Commerce

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1. PAGE1 Andy KhenHotel E-Commerce101 E-Commerce Strategic Plan Hotel E-Commerce 101 Andy Khen 2. PAGE2 Andy KhenHotel E-Commerce101 Goals Short-term Revenue Generator…
  • 1. PAGE1 Andy KhenHotel E-Commerce101 E-Commerce Strategic Plan Hotel E-Commerce 101 Andy Khen
  • 2. PAGE2 Andy KhenHotel E-Commerce101 Goals Short-term Revenue Generator Online Exposure Long-term Sustainability Loyalty Goals Short and Long Term
  • 3. PAGE3 Andy KhenHotel E-Commerce101 AIM Room and Non-Room Revenue Offline and online Expanding the Online Revenue Find the most cost-effective channels to distribute the room inventory Decrease the Distribution Costs “Always aim for achievement. Forget about success.” (Helen Heyes, n.d.) &
  • 4. PAGE4 Andy KhenHotel E-Commerce101 The Focus Focusing on the Basics “Concentration – Important to our success.” (Ingvar Kamprad, 1976) ACCOUNT MANAGEMENT CONVERSIONVISIBILITY
  • 5. PAGE5 Andy KhenHotel E-Commerce101
  • 6. PAGE6 Andy KhenHotel E-Commerce101 Account Management Revenue Sources
  • 7. PAGE7 Andy KhenHotel E-Commerce101 Online Channels Description (RTB & USP) Photos Reviews Content Management Improving online presentation
  • 8. PAGE8 Andy KhenHotel E-Commerce101 Brand.com Higher ARR Increasing Loyalty Better Presentation Direct Distribution Focus on high yield channel
  • 9. PAGE9 Andy KhenHotel E-Commerce101 Partner  Partner with banks, airlines, Railway, etc by providing their clients and employees with special rates when booking online  Each partner is provided with specific booking code  Shared marketing efforts such as LED, Billboard, e-blast, etc Increasing bookings from brand.com via 3rd parties
  • 10. PAGE10 Andy KhenHotel E-Commerce101 Best Rate Guarantee Focus on high yield channel
  • 11. PAGE11 Andy KhenHotel E-Commerce101 Rates BAR Premium Published Discounted Rate Fences Providing wider options as to grab wider market segments
  • 12. PAGE12 Andy KhenHotel E-Commerce101 Rate War Anticipating rate ware in over-supply situation
  • 13. PAGE13 Andy KhenHotel E-Commerce101 Dynamic & Multi-Pricing Approach Leverage Rate and Time Maximise Occupancy Maximise ARR Maximise RevPAR Maximise Revenue Room Guest Time Location
  • 14. PAGE14 Andy KhenHotel E-Commerce101www.swiss-belhotel.com BAR: dynamic based on occupancy Discounted Rates: advanced purchased, etc - discounted based on BAR Premium Rates: packages, added-value offers Published Rates: static Rates Multiple & Dynamic Pricing Maximising RevPAR
  • 15. PAGE15 Andy KhenHotel E-Commerce101 Demand & Supply Occupancy versus ARR
  • 16. PAGE16 Andy KhenHotel E-Commerce101 Multiple Pricing Approach Maximising Revenue Revenue 1 €250 x 150 €37,500 Revenue 2 €350 x 100 €250 x 50 €200 x 50 --------------- €57,500
  • 17. PAGE17 Andy KhenHotel E-Commerce101 Upselling Increasing average booking amount
  • 18. PAGE18 Andy KhenHotel E-Commerce101 Prospect Theory  Professor Kahneman (Nobel Prize winner) & Amos Tversky in 1979  It is easier to get customers who have already committed to purchase to spend an additional amount (the amount of an upgrade, for example) than it is to get them to make the more expensive purchase at the initial decision point. Upsell & Upgrade
  • 19. PAGE19 Andy KhenHotel E-Commerce101 Cost Effective Protect Rate Integrity Generate More Bookings OTA’s Management The 80/20 Rule
  • 20. PAGE20 Andy KhenHotel E-Commerce101 Group Priority List of OTA’s Local OTA’s Note A High A B C Available at all times B Medium D E F G H I Medium – low periods C Low J K L M N Low periods OTA’s Grouping Improving inventory management
  • 21. PAGE21 Andy KhenHotel E-Commerce101 Fixed contracted rates Minimum online selling rates Fully controlled allotments Online Wholesalers Leveraging the networks of wholesalers
  • 22. PAGE22 Andy KhenHotel E-Commerce101 • In 2012, online bookings in APAC were still dominated by online suppliers accounted more than 60% from the total online production • List of online wholesalers: Hotelbeds, GTA, Jactravel, Transhotel, DOTW • Local online wholesalers (Indonesian): Mandira Abadi, MG Holiday • Autralian wholesalers: Flight Center, The Travel Corporation (Creative Holidays & New Horizons), GOH holidays, Qantas Holidays & Asia Escape Holidays Wholesaler Account Management Expanding the wholesaler accounts
  • 23. PAGE23 Andy KhenHotel E-Commerce101 Marketing exposure Segmented market Excess rooms, low period Coupons, no allotments Flash Sale Sites Using group buying sites during low periods
  • 24. PAGE24 Andy KhenHotel E-Commerce101
  • 25. PAGE25 Andy KhenHotel E-Commerce101 Billboard Effect OTA’s and social media channel as online marketing tools
  • 26. PAGE26 Andy KhenHotel E-Commerce101 Chris Anderson (Cornell, 2009): Billboard Effect  JHM Hotels in the US , 4 of 35 properties taken as study objects  Listed on Expedia on and off in a circle of 7 – 11 days for 3 months  Findings: reservation on non-OTA channels (eg. Brand.com) increased by 7.5 – 26% when being listed on Expedia OTA’s and their indirect impact to direct channels
  • 27. PAGE27 Andy KhenHotel E-Commerce101 UPC or Prepayment Connected to channel manager Cost- effective commission Rules for New OTA Account Every contract is a cost; hence we have to ensure production
  • 28. PAGE28 Andy KhenHotel E-Commerce101 Sky Scanner Trivago Wego Meta Search Sites Leverage the meta search sites to increase visibility
  • 29. PAGE29 Andy KhenHotel E-Commerce101 Affiliate Marketing Paying for result only
  • 30. PAGE30 Andy KhenHotel E-Commerce101 Social Media Sales, marketing & guest interaction tool
  • 31. PAGE31 Andy KhenHotel E-Commerce101
  • 32. PAGE32 Andy KhenHotel E-Commerce101 • Customer Contact Management • Multiple Online Payments • Competitor Monitoring • Review Scores Competitive Rates Constant Availability Informative Hotel Description Sufficient Photos Conversion
  • 33. PAGE33 Andy KhenHotel E-Commerce101
  • 34. PAGE34 Andy KhenHotel E-Commerce101 How It Works Cost-effective marketing and sales tool
  • 35. PAGE35 Andy KhenHotel E-Commerce101 Affiliate Marketing Regular campaigns on Brand.com
  • 36. PAGE36 Andy KhenHotel E-Commerce101
  • 37. PAGE37 Andy KhenHotel E-Commerce101 Guest Interaction: Quizzes Complain handling Inquiry Marketing Sales Social Media Freebies, quizzes, etc
  • 38. PAGE38 Andy KhenHotel E-Commerce101 TripAdvisor Online Banners Google Map SEM As a supplement to SEO
  • 39. PAGE39 Andy KhenHotel E-Commerce101 Online Reputation Management Leverage online reviews to increase brand competitiveness
  • 40. PAGE40 Andy KhenHotel E-Commerce101 Main Factors People Book A Hotel Most people choose a hotel because of the reviews
  • 41. PAGE41 Andy KhenHotel E-Commerce101 ”If a hotel increases its review scores by 1 point on a 5-point scale (e.g., from 3.3 to 4.3), the hotel can increase price by 11.2 percent and still maintain the same occupancy or market share”. Professor Chris Anderson, Cornell University,,2012 Relation between Reviews & ARR Study from Cornell University
  • 42. PAGE42 Andy KhenHotel E-Commerce101 Reputation Management “More than 70% guests read reviews before booking a hotel…” (Michael Menis, IHG) o Monitor and response reviews in timely manners; o Use Reputation Management software when possible; o Adopt pro-active approach (as opposed to passive approach) to get reviews from guests; o Measure and monitor NPS (Net Promoting Scores) of each property and or brand. Online Reviews Word of MouthIn-hotel Reviews NPS
  • 43. PAGE43 Andy KhenHotel E-Commerce101 Guest Reviews Maintaining all reviews both offline and online
  • 44. PAGE44 Andy KhenHotel E-Commerce101
  • 45. PAGE45 Andy KhenHotel E-Commerce101  Weekly  Monthly  Quarterly Monitoring, Reporting & Reviewing
  • 46. PAGE46 Andy KhenHotel E-Commerce101 Thank You 4ndykh3n@gmail.com
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