Demystifying Distribution 2.0

media on offline bookings (i.e., stimulated online but booked offline), but the business that is entirely triggered and booked offline is still large. Any planning related to distribution channels should account for both online and offline channels. Because consumers tap many channels prior to booking, the interaction at the point of personal guest contact, such as a call center, front desk or sales department must be designed to accommodate all bookers, whether they have previously used electronic channels or not. This will create a wider variety of guest contact experiences than has been traditionally been planned for in hotels, and the staff approach and technology used for this purpose need to be crafted to support the distribution strategy at these touchpoints. It should be appropriate for the channel, but also consistent with the guest experience in other channels. This will often require a conscious effort by a hotel operation to revise and mold the offline inquiry, booking and guest service process to the overarching distribution strategy. Areas most affected may include: • front desk, reservation and sales training on inquiry/booking issues • guest contact staff training focused on awareness of the multi-channel experiences and improved property/destination knowledge (staff should know more about the property and the destination than the guests) • methods for handling loyalty/retention efforts • techniques to monitor and respond to consumer reviews • improved intelligence at the hotel level for revenue management • improved intelligence at the hotel level to understand the guests’ travel objectives, the path they took to arrive at the hotel, and ultimately match the hotel experience more closely to the needs of a hotel’s customer base That traditionally distinct line of demarcation between the guest coming through online vs. offline channels has become blurry indeed. The environment continues to change each year. Other factors have emerged to influence TOTAL HOTEL ROOM REVENUE 140,000 120,000 100,000 80,000 60,000 40,000 20,000 (US$M) % Online % Offline 2006 2007 2008 2009 SOURCE: PHOCUS WRIGHT, INC. AND AH&LA PROJECTIONS the consumers and alter the marketplace. The widespread availability and success of low cost air carriers has opened travel to many new markets (both demographic and geographic). Consumers demand higher levels of personalization, convenience and transparency in their travel shopping and purchasing behavior. This activity has launched an explosion in the number of websites that are purpose-built for trip planning, travel specific search and sharing travel experiences. Consumers have taken control of much of the online dialogue related to branding and product/service standards. This has been 17 PUBLISHED BY THE HSMAI FOUNDATION

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