Demystifying Distribution 2.0

TABLE OF CONTENTS ILLUSTRATIONS, GRAPHS, CHARTS & IMAGES Total hotel room revenue online vs. offline (PhoCusWright) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Adoption of new technology (Forrester) . . . . . . . . . . . . . . .22 Occupancy trends 2002-08 (STR) . . . . . . . . . . . . . . . . . . .27 Average rate trends 2002-08 (STR) . . . . . . . . . . . . . . . . . .27 RevPAR trends 2002-08 (STR) . . . . . . . . . . . . . . . . . . . . .28 Online consumer sales trends (comScore) . . . . . . . . . . . .28 Global travel online penetration by region 2005-09 (PhoCusWright) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 U.S. hotel chain distribution channel mix 2006, 2009 (PhoCusWright) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 InterContinental London interactive map and concierge tour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 American Airlines PDA application . . . . . . . . . . . . . . . . . . .34 Mobile messaging and Internet use, 2007 (eMarketer) . .35 3G mobile phone subscription penetration 2005-06 (eMarketer) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 CTrip delivery system and reservation operations 2006 (photo) . . . . . . . . . . . . . . . . . . . . . . . . . . .36 Microsoft Surface technology images . . . . . . . . . . . . . . . .37 Travel market Asia Pacific 2006-08 (PhoCusWright) . . . .39 Travel purchase funnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 The complex hospitality reservation distribution network schematic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Hotel system schematic . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 Major travel industry distribution companies . . . . . . . . . . .47 Reservation representative service vendors . . . . . . . . . . . .51 Reservation representative service vendors offering sales and marketing . . . . . . . . . . . . . . . . . . . . . . . .51 GDS market share 2007 (TravelCLICK) . . . . . . . . . . . . . . .54 GDS hotel bookings trend 1994-2008 (TravelCLICK) . . .58 Online travel agency market—share of gross bookings 2007 (PhoCusWright) . . . . . . . . . . . . . . . . . . . . .59 Travelopoly—the consumers’ path through the travel distribution maze . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60 Primary products sold by website . . . . . . . . . . . . . . . . . . . .62 Kiwi Collection—niche website for luxury travelers . . . . . .63 Continental Airlines selling hotel rooms . . . . . . . . . . . . . . .63 Promotional portals/hot deals . . . . . . . . . . . . . . . . . . . . . . .64 New Zealand’s website . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 VibeAgent—consumer reviews and booking site . . . . . . . .66 NileGuide—travel search engine and travel guides . . . . . .66 IXEO and International Lifestyles— dynamic packaging engines . . . . . . . . . . . . . . . . . . . . . . . . .67 Kayak and Sidestep lead generation by travel sector 2007 (Compete, Inc.) . . . . . . . . . . . . . . . . . . .67 Boo.com and Uptake.com—travel search engines and trip planners . . . . . . . . . . . . . . . . . . . . . . . . . . .68 Trip planning tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68 Expedia Corporate Travel rewards program . . . . . . . . . . . .72 Reasons to use OTAs vs. suppliers (comScore) . . . . . . . .73 Consumer reviews consulted prior to purchase (eMarketer) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74 Components of a reservation fee . . . . . . . . . . . . . . . . . . . .76 Distribution cost comparisons . . . . . . . . . . . . . . . . . . . . . . .77 Net benefits by channel . . . . . . . . . . . . . . . . . . . . . . . . . . . .78 Top TA groups 2007 (Travel Weekly) . . . . . . . . . . . . . . . . .86 Corporate portals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .86 IHG’s meeting planner incentive offer . . . . . . . . . . . . . . . . .89 Small group websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89 Other group sites with sales/lead opportunities . . . . . . . .89 Meeting planners share feedback online . . . . . . . . . . . . . .90 Group bookings process schematic . . . . . . . . . . . . . . . . . .92 RFP websites and toolkits . . . . . . . . . . . . . . . . . . . . . . . . . .93 U.S. online advertising revenue by search engine 2006 (eMarketer) . . . . . . . . . . . . . . . . . . . . .96 U.S. spend on search marketing 2006-2011 (eMarketer) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96 Source of referrals to Kayak and Sidestep, 2007 (Compete, Inc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98 Online marketing vendors . . . . . . . . . . . . . . . . . . . . . . . . .102 InterContinental booking engine . . . . . . . . . . . . . . . . . . . .105 Vacation planning from Steamboat Springs, CO . . . . . .106 CarTrawler’s distribution platform . . . . . . . . . . . . . . . . . . .107 Booking engine vendors . . . . . . . . . . . . . . . . . . . . . . . . . .108 Consumer’s and spider’s view of a website . . . . . . . . . .109 Framework for search engine optimization (BruceClay.com) . . . . . . . . . . . . . . . . . . . . . . .111 Hotelrooms.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112 Keyword vendors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112 SE relationship chart (BruceClay.com) . . . . . . . . . . . . . . .113 Social media tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .120 Metrics for social media . . . . . . . . . . . . . . . . . . . . . . . . . . .120 The use of consumer reviews (eMarketer) . . . . . . . . . . . .121 Trip Advisor’s top 10 dirtiest hotels . . . . . . . . . . . . . . . . . .121 Best Western’s Knock Knock widget . . . . . . . . . . . . . . .122 DiscoverOurTown.com, a local search site . . . . . . . . . . .122 Revenue management technology vendors . . . . . . . . . . .127 Rate shopping utility vendors . . . . . . . . . . . . . . . . . . . . . . .127 Recommendations to hotel executives and owners . . . .136 Reference websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145 PUBLISHING PARTNERS TIG GLOBAL | PEGASUS SOLUTIONS 14 Boo.com Uptake.com?travel BruceClay.com Hotelrooms.com BruceClay.com

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