“Kalibri Labs report says Brands made a dent in OTA’s with there membership efforts”

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CoHosts
Robert Cole
Holly Zoba
Tim Peter

Show Notes
00:01 Apple news and why we are so loyal
00:21 Kalibri labs report for HSMAI on the value of the current brand loyalty program drive and its success and status why not a full 52 weeks?
01:05 Price product and quality are three key components to a purchase decision.
01:21 Hoppers new Hotel Pricing AI forecasting model the real issue is for Revenue Managers
01:35 The New Chrome rolls out matching the Safari roll out of blocking cross channel ad’s
01:50 Google’s new parallel tracking loads
02:08 show ends

Potential topics

Get visitors to your landing page faster with parallel tracking

https://adwords.googleblog.com/2017/10/get-visitors-to-your-landing-page.html

Top 8 ways to increase airport hotels occupancy

https://ehotelier.com/insights/2017/10/26/top-8-ways-increase-occupancy-hotels-near-airport

Amazon Key Is Bigger Than Package Delivery

https://gizmodo.com/amazon-key-is-bigger-than-package-delivery-1819838149

Introducing Hotels on Hopper

Hopper becomes one-stop shop for travel with first ever hotel price prediction service

http://www.hopper.com/corp/announcements/introducing-hotels-on-hopper

ED — “They predict what a hotel price strategy will be. This will require a shift on the revenue manager to think carefully on how they approach discounting to top up”

STUART — “This kind of tool will split the industry in two. The folks who do a good job of yielding rates up and resisting the urge to dump rates at the last minute will benefit significantly from this. The lazy people are going to get majorly hurt by this kind of transparency. I’ve been using similar air travel predictors for a while and it’s extremely effective.”

BOOK DIRECT CAMPAIGNS: THE COSTS & BENEFITS OF LOYALTY

https://www.kalibrilabs.com/bookdirect

KEY TAKEAWAYS There were four primary takeaways from the study.

1. Consumer Behavior drove Channel Shift in Favor of Brand.com There was clear evidence of faster growth in Brand.com when compared to the OTA channel. This was true of both revenue and room nights when compared to the prior year before the direct booking campaigns were launched.

2. Net ADR of Brand.com Loyalty rates were higher than Net ADR of OTA rates When comparing average rates net of direct transaction costs such as channel fees, commissions and loyalty costs, the Brand.com rates that loyalty members booked were 8.6% higher than the net average rates of OTA transactions. As the rates are based on actual transactions, this takes into account all discounting related to the campaigns.

3. Results Reflected Net Positive Revenue Outcomes When actual 2016 results were compared to projected outcomes based on a statistical regression model, the results pointed to a net positive revenue outcome. While the model recognized potential rate trade down in 14-17% of Brand.com room nights, the median Net Revenue benefit for the sample was between +$9,000 to +$33,000 per hotel when taking into account all discounts, trade downs, loyalty and commissions costs for the subset of the business that was targeted by these campaigns (retail transient).

4. Loyalty is a Powerful Driver of Demand and Growth is Strong The 2016 loyalty contribution across the upper midscale, upscale and upper upscale segments ranged from 40-60% meaning that 4-6 out of every 10 room nights were driven by loyalty members. The growth in loyalty contribution in the Kalibri Labs database from 2015 to 2016 was consistent with the brand reports of 30-40% growth in membership over the previous year. Hotel chains reported record numbers of new members with similar recurrence patterns as their normal new member population.

Advertising

1. Advertisers are upset with Safari’s new anti-tracking features
https://www.engadget.com/2017/09/16/advertisers-are-upset-with-safaris-new-anti-tracking-features/

2. What we learned analyzing 496,470 hotel affiliate clicks
https://www.tnooz.com/article/what-we-learned-analyzing-496470-hotel-affiliate-clicks/

3. Airbnb eyes expansion with affiliate program for sites with 1M+ users, new API

Airbnb eyes expansion with affiliate program for sites with 1M+ users, new API

Brands

4. New brands, pricing structure in the works for Hilton
http://hotelnewsnow.com/Articles/249188/New-brands-pricing-structure-in-the-works-for-Hilton

5. Marriott and Choice Take Varied Approaches to Reviving Classic Midscale Brands

Marriott and Choice Take Varied Approaches to Reviving Classic Midscale Brands

Intermediaries

6. A bigger Hotelbeds ‘true alternative’ to Priceline, Expedia, says chief

A bigger Hotelbeds ‘true alternative’ to Priceline, Expedia, says chief

7. Growth Juggernaut Trivago Sees Revenue Slump Coming as Biggest Customers Pull Back

Growth Juggernaut Trivago Sees Revenue Slump Coming as Biggest Customers Pull Back

8. Hopper expands its price prediction technology to hotels, initially in NYC

Hopper expands its price prediction technology to hotels, initially in NYC

9. Expedia Axes Its Price-Matching Guarantee in a Sharp Break From the Past

Expedia Axes Its Price-Matching Guarantee in a Sharp Break From the Past

Investment & Taxation

10. Disneyland cancels parking expansion on eastern side of park, focuses on new hotel and parking on west side

Disneyland cancels parking expansion on eastern side of park, focuses on new hotel and parking on west side

Google’s plan to block certain ads in Chrome is making ad executives nervous and fueling conspiracy talk

http://www.businessinsider.com/googles-ad-block-plan-has-digital-ad-industry-apprehensive-2017-10

Jeff Bezos’ brilliant advice for anyone running a business http://www.businessinsider.com/jeff-bezos-brilliant-advice-for-anyone-running-a-business-2015-1

Mind Your “P’s and Q’s” http://www.timpeter.com/2013/09/10/mind-your-ps-and-qs-travel-tuesday/