Rate Parity and Revenue educational slides About OTA

Rate, Parity and Revenue educational slides

About OTA Insight is a cloud-based data intelligence platform for the hospitality industry. We provide hoteliers with a suite of revenue management solutions that empower them to make smarter revenue and distribution decisions. Since then, OTA Insight has won many industry awards and grown to become the preferred revenue management solution for over 40, 000 independent, local and global chain properties in 168 countries, supported by 100+ stellar employees. Rate Insight Parity Insight Revenue Insight

Key factors affecting and changing the hotel distribution landscape

Distribution shift Largest impact on future distribution in the next 1 -3 years OTA Insight survey results 32% OTAs 23% 17% Metasearch 10% Blockchain 9% 7% OTA Insight, 2019 ?

Highest impacting technology in 2019 OTA Insight survey results Data analytics / Business Intelligence 61% 43% Artificial Intelligence Guest experience technology 33% Mobile Bots 39% 18% OTA Insight, 2019

How should hoteliers react on those changes?

Reality and current mistakes Rates dropped last minute Reason: possible hotel supply growth. There is more and more uncertainty about the right hotel qualities, which raises the question: “Will my guest come to my hotel if I don’t drop my rates? ”

Role of intermediaries in demand management

The reality of online distribution

Airbnb, Amazon, Google

And it’s getting more complex. . . Combining travel - related products New flight booking platform New acquisition New Booking. basic updates

OTA vs direct bookings and rate parity challenges

What is rate disparity? The difference between quoted prices on hotels’ own websites and those shown by online travel agents (OTAs) and other third-party channels.

Do hoteliers feel in control of rate parity? Do you feel in control of your rate parity strategy? Yes 49% 26% 25% OTA Insight, 2019 Not sure I think so, but not sure No No 51% Uncertain

Main cause of rate disparity OTA Insight survey results 59% Wholesalers 39% OTAs 33% Technology/ channel manager issues 15% Metasearch OTA Insight, 2019

The power of hoteliers and distribution channels OTA’s have gained the majority of market share for online reservations, and spent approximately $10. 6 Bill on marketing in 2018. Market value $ 45, 73 43, 83 bill 87, 56 bill $$100, 12 $ 23, 79 24, 47 bill $ 12, 15 10, 72 bill 18, 59 bill $ 25, 80 8, 84 bill $$8, 42 $ 18, 32 18, 57 bill 5, 94 bill $$5, 32 $$ 7, 33 7, 72 bill

European online bookings share % forecast The battle for parity comes down to the fight for customers and lower cost of acquisition 2021 Phocuswright, 2017

What does this mean for Europe?

Parity performance overview Independents and Local Chains and Global Chains EUROPE PARITY PERFORMANCE 4% 13% 51% 34% 45% 53%

Rate disparity range (loss) EUROPE RATE LOSS RANGE Major Chains Independents & Local Chains 31% 28% 20% 18% 14% 12% 10% 7% 6% 8% 13% 8% 11%

Channel performance overview Independents and Local Chains vs Global Chains EUROPE CHANNEL PERFORMANCE

Top 5 undercutting wholesalers by volume worldwide

The tricky wholesaler to channel pathway

The benefit of market intelligence resources

Leverage your data Cross dimensional performance analytics Length of Stay How many room nights does each channel book on average? Day of Week Which day of week are your channels driving business to you? Country Where are your visitors coming from? Room Types Is there a difference in room type preference between your guest types? Booking Window Booking behaviour of your guests? Pickup How many rooms have you picked up and what type of business?

Measure KPIs ● Understand your key business drivers ● Clear, concise analytics and Yo. Y comparison of revenue management KPIs: Room Nights, ADR, Revenue ● Stay Dates: Track day to day performance ● Booking Pace: Understand analyse booking patterns and lead times, comparing with dynamic time periods

What RMs/ GMs/ Sales Managers need? Accessing numbers intuitively, and have an immediate overview of the type of business that came in over any customised period vs. a reference period

Visit us on ota-insight @otainsight www. otainsight. com