Managing Sales for International Growth Research & Channel Insights
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1 Managing Sales for International Growth Research & Channel Insights Online Sales Symposium Aviva Stadium Dublin Amanda Horan, International Leisure Sales Team Thursday 17 th Sept 2015
2 A context for International Leisure Sales Investment Ireland 4M people / 243 Av Spend 36.7m Great Escapers 4m Warm to Ireland International Top four markets (GB, US, Ger, Fra) 145 million/ 550 Av Spend 26.4m Social Energisers 3m Warm to Ireland 24.5 million = Warm to Ireland 12.9m Culturally Curious 3m Warm to Ireland
3 Why Segmentation is needed Are the needs and holiday motivations likely to be similar? Applying what we know about Segmentation to a Sales Development Strategy
4 Path to purchase How does our Segments buy their holiday travel?
5 The Customer Path to Purchase Journey - International Leisure Inspirational/Emotional Practical/Factual Online Offline
6 Channel Research» Key Insights from Online Channel Research
7 Channel Research Online channel growth proliferation
8 Global Online Travel Penetration by Region
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10 Direct V Indirect Online Channel Performance Globally - International visitors more likely to use indirect options to book online» In 2013 our survey of Irish Hotels confirmed that 59% of Hotels achieved < 20% international sales from brand web while 33% reported less than 10% of International bookings through own website Implications: Ireland lags behind global Industry performance & other industries in our performance
11 Direct V Indirect Online Channel Performance Online tour operators (OTAs) - grown faster than any other online channel + 47% since 2011» 52% of Irish Hotels confirmed OTAs are highest performing channel for International bookings» % of Irish hotels subscribing to between 5 and 20 online channels, with 46% active in between channels» OTA s are innovating in the revenue managements tools available Ireland s hotel industry (in the main) are not using these optimally (yet!)» OTA s - intention to operate in the corporate travel market in next 2-4 years
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13 How well is Ireland resourced, structured and skilled? Activity Revenue Management Dedicated Resource 61% did not have 31% continue not to have Capability/Training in Revenue & Channel Distribution Management Technology Interface to automate Channel Bookings to PMS PMS system upgrade Channel Manager software system 49% receive 40 hours or less p.a. Unknown Unknown Unknown 2015 No robust data on the cost per acquisition..most other global industries trading on line know this! 75% receive 40 hours or more p.a 63% no automation of bookings to PMS. 38% planning to invest 75% have reviewed PMS in last year -57% intend to invest 22% still working without channel manager system, while 15% intend investing
14 Mobile Booking Trends» Are we ready?
15 OTAs view of mobile Mobile sales are growing faster than ever (moving to double digits!) Market estimates indicate that mobile travel bookings will double to 1 in 5 bookings (1 in 4 for Europe) by 2016 (Source: Phocuswright US Online travel Overview 2014) >50% of intermediaries we researched estimate that > 40% of all online bookings to Ireland will be transacted by mobile in 2015 Over next few years, expect to see New and Emerging markets take over the growth trajectory of Europe and US for online mobile bookings Question: How ready is Ireland/your business to access our share?
16 Channel Research Summary Insights» Channel Proliferation & Innovation. Requires clarity on priority markets, target segment messaging and focused decisions on which distribution channels to optimise international leisure sales growth» Growth in OTA bookings likely to continue, so the challenge is to embrace it, manage it with a clear focused strategy» Evolving Business model of online platforms.. Demanding on businesses to stay on-top of this, will need to resource it effectively» Technology Investment Necessary to continue to review and invest in technology solutions to support distribution and CRM» Skills Needed training and skills development is critical and requires ongoing investment and support to apply and implement learnings
17 Routes to Market Your Strategy for Leisure Sales Growth
International Leisure Sales. 21 January 2015 Managing Sales Channels for International Growth
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