How can Independent Hotels Survive In Today s Saturated Marketing Jungle? A presentation to the. By Gabrielle Alam and Sharon Bernstein

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1 How can Independent Hotels Survive In Today s Saturated Marketing Jungle? A presentation to the By Gabrielle Alam and Sharon Bernstein

2 Eyes2market Europe Eyes2market is a dynamic and creative sales and marketing and organisation. Our core business is travel industry sales and market representation. Eyes2market maximise electronic revenue via GDS (Global Distribution systems) and alternate distribution channels ( ADS). Eyes2market provides a one-stop-representation solution to European feeder markets for independent hotels and tourism destinations. Eyes2market is a niche market specialist.

3 WHY ARE YOU HERE TODAY? To gather information on new trends? To gain knowledge of the market? To learn about practical solutions? To succeed in the marketing jungle?

4 CONSUMER TRENDS Responsible Tourism

5 CONSUMER TRENDS FAIRTRADE

6 CONSUMER TRENDS Once in a lifetime experiences

7 CONSUMER TRENDS Authenticity

8 CONSUMER TRENDS Individual Fulfillment and Growth

9 HOW TO SURVIVE? Run just that bit faster than the other guy/girl!

10 WHICH ARE THE PROBLEMS? 1. How to differentiate a beautiful product in a world of beautiful products? 2. How to generate consistent revenue for hotels? 3. How to leverage a hotel s USP (Unique Selling Proposition)? 4. How to maximise marketing dollars and stay competitive in a fast changing and competitive environment?

11 Take a look at this jungle! Who owns who? Merger Mania! Thomas Cook/MyTravel: merge in 2007, most job cuts in the UK, 22% market share TUI/First Choice - Flat revenue trend in the tour package business, First Choice to focus on niche tourism products as a specialist - 24% share of the European market All Rewe brands: Dertour, Meiers, ITS, LTU, Jahn, Tjaereborg, ADAC Reisen Kuoni has adopted a new business structure and has been on a shopping spree Companies such as Western & Oriental are building their own empires! (Western & Oriental, Mediterranean Experience, Kids in the Med, Regent Holidays, Ranch America, South American Experience, Ski Dream, Hawaiian Dream, Harlequin Holidays, Made to Measure, Lakes & Mountains, Tropical Locations, Villa Select, key2holidays, Rainbow Tours, Eclipse, Travel Management Team and Lynton Cooper) AIR Berlin/LTU/Condor merger

12 THE EUROPEAN MARKET Direct real-time online bookings are an increasingly important issue for leisure properties and travel suppliers. Hoteliers have to adopt direct and personal selling propositions. Dynamic packaging by travel agents is on the increase along with the growth of bedbanks (non bonded accommodation only providers.)

13 THE EUROPEAN MARKET 95 million web users will create content online by 2011 User-generated content (UGC) on the Web is set to put even more power into the hands of the consumer. Category leaders include YouTube, MySpace, Facebook and Photobucket will lead the charge in terms of legitimizing the medium.

14 THE EUROPEAN MARKET Tripadvisor.com is the undisputed leader in Internet travel review websites. Currently, the site tracks over with nearly 25 million monthly visitors, five million registered members and 10 million reviews and opinions. Featuring real advice from real travellers, TripAdvisor-branded sites cover 270,000+ hotels and attractions, a lodging property or travel destination in a very competitive area cannot afford to be left behind.

15 THE UK MARKET Home workers are becoming an important distribution tool in the UK market There are approximately 2500 Home Workers today - an almost non existent market 10 years ago. The market leaders are: Travel Councellors, Future Travel, Hayes Travel, Holiday Please and Holiday Elite.

16 THE CHALLENGES 1. Understanding characteristics of your TARGET AUDIENCE per market niche and per country 2. E-Commerce 3. Find the right brand position (Affiliation/Branding?) 4. How to find the right partner!

17 First Challenge: Define the target audience No place for ME TOO products! Your business needs to: define its target audience: Families Luxury travellers Honeymooners Sports freaks Wellness lovers Single travellers Ecotourism tourists Cultural tourists deliver a market ready international product

18 First Challenge: Define the target audience Example 1: Attracting the family market You will need extensive facilities for different ages: Kids clubs connecting rooms children s menu children s excursions suitable furniture babysitter service safety programmes Yes?

19 First Challenge: Define the target audience Get creative, fulfill the dreams of this market niche offer children s swimming lessons meet the CHEF for a cookery lesson meet local children and learn about their culture active teen s programs like waterski, jetski Yes?

20 First Challenge: Define the target audience Example 2: Is your hotel branded as a SPA resort? Don t waste your time looking for the pharmaceutical Conference and Incentive market segment, if... Many pharmaceutical companies cannot book a hotel with the word SPA in its title!

21 First Challenge: Define the target audience Example 3: Do you want to attract the Eco-Tourist? Make a green pledge Your Commitment: Reduce Re-use Recycle Rethink (Fairtrade, co2) Yes!

22 Second Challenge: E-Commerce How to achieve online success? 1. Get your brand proposition right 2. Understand how consumers consume 3. Design a compelling user experience 4. Make sure your marketing infrastructure s built to work (CRM = Customer Relationship Management) 5. Right mix of traditional and online marketing 6. Make sure your website is built for the future

23 Second Challenge: E-Commerce Surprise system Communications Client clubs trade training Blog sites influence Competitions Readers offers client reward program Associations Portals 10. CRM Consumer relations Trade relations 9.Special Marketing 1. Strategy 11 Cross Selling potentials Business trends Marketing Ideas Branding Pricing models B2C B2B B2B2B2C E-commerce Campaign 2.Status Page impressions Unique visits look 2 book ratio time line Website design, content management, architecture web booking engine capability and functionality International issues CRM market size and structure Cost/Budget issues Connectivity Central Reservations system 3.Website Tracking 4. Marketing Technical issues Data source Opt-in list management new lists design online PR activities Blogs / Social Media 8. Online PR 5.Affiliate Marketing Affiliate systems and programs 1. white label trade 2. logo click through 7. Search engines marketing Bring the house in order SEO and SEM Advertising PPS or adwords Placement with third party sites 6.Cooperations special interest Information seekers -portals Eco tourism Community issues Health & Safety policy

24 Second Challenge: E-Commerce Internet Strategy 1. Define Strategy 2. Website Status 3. Website Tracking 4. Marketing 5. Affiliate Marketing 6. Co-operations Special Interest 7. Search engines marketing: SEO and SEM, adwords 8. Online PR, social media e.g. TripAdvisor, WAYNE 9. Special Marketing competitions readers offers client reward programmes Pod casting 10. CRM customer relations Surprise systems Communications client clubs travel trade training Blog sites management 11. Cross selling potential Associations portals

25 3. Find the right brand position (Affiliation/Branding?) To brand or not to brand? Choices: Hard Brand (Hyatt, Sheraton) or Soft Brand (Small Hotels of the World, Leading Hotels) Affiliation or branding? Challenge: select the right affiliation or branding according to your expectations: Awareness and recognition? Sales & Marketing and PR?

26 3. Find the right brand position (Affiliation/Branding?) Brand Promise Mind the gap Customer Experience Some brands fail to clearly communicate their proposition Other brands promise sales for your hotel and end up selling to you BRAND GAP = FAILURE

27 4. How to find the right sales channel for this jungle trip? Does your chosen marketing alliance meet your expectations? Which marketing alliance is right for you? Is your objective: pure image? a marketing platform and not a sales tool?

28 4.How to find the right sales channel? Have a look at this jungle!! Supplier: Transport; Hotel Packaging: wholesaler Airline Hotel Other Tour Operator Wholesaler White label dynamic TO Connectivity CRS ASP Booking +Fulfilment TA OTA Consulting, Local Information Consumer acquisition Consumer C2C portal General Search Engines Affiliate Networks/ Brands

29 4.How to find the right sales channel for this jungle trip? Do you choose to have a local representative or try and sell to the world from your own office? Is your objective: image and marketing? or increased revenue generation? Do your sales staff have: expertise in all feeder markets, all market segments and e-commerce?

30 4. How can independent hotels survive in today s saturated marketing jungle? you definitively need to choose the right partner If you want to compete successfully in Europe s saturated marketing jungle,.. and have a clear definition of your target audience, an effective CRM and a strong e-commerce strategy

31 AND IF EVERYTHING FAILS?

32 QUESTIONS? COMMENTS?

33 HOW CAN INDEPENDANT HOTELS SURVIVE IN TODAY S SATURATED MARKETING JUNGLE? London Hamburg INTELLIGENT SOLUTIONS FOR: Independent hotels and chains Destinations

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