About this Episode
Travel shopping behavior follows a cyclical flow – when demand is low, OTAs thrive because consumers are value-conscious and looking for the ‘best deal.’ When demand is high, shopping traffic moves back to supplier sites. Chris Anderson, Assistant Professor at Cornell School of Hotel Administration, shares his insights on how hoteliers can leverage OTAs and brand.com to achieve maximum conversion.
Key learnings:
- The recent demand decline led to increased traffic on OTAs
- Value-conscious consumers shop more – OTAs are vehicles to shop & compare
- An enhanced presence on OTAs positively impacts bookings on supplier channels
Click for Video Details
- Episode #32
- Posted on April 19, 2010
- Duration: 13:29
- Captions:
0:00 How to Leverage OTAs and Brand.com for Maximum Conversion
1:45 How can hoteliers achieve maximum conversion?
2:10 The Billboard Effect: correlation between bookings on brand.com & presence on OTA
3:10 OTA vs. brand.com is an evolving world
3:50 OTAs became really attractive post 9/11
4:00 period of 5 years, suppliers tried to bring consumers back to supplier.com
4:20 recent demand decline led to increased traffic on OTAs
4:40 value-conscious consumers shop more – OTAs are vehicles to shop & compare
5:00 suppliers provide OTAs more favorable rates & inventory
5:25 continental airlines: late 90s - 2006 drop in yield & massive increase in online transactions
6:00 active pricing online & use of OTAs resulted in lower yield
6:50 airline’s occupancy shifted to off-peak days
7:50 OTAs allowed consumers to shop and choose cheaper offerings
8:10 OTA attracts flexible, value-conscious leisure traveler
8:40 brand.com booker may be less value-driven, more brand loyal
9:00 predict there will be a shift where consumers become more service focused
10:21 we will see same cycle we have seen throughout the years
10:50 when occupancy is less than 60%, OTAs thrive - phocuswright
11:10 when occupancy is 60% plus, shopping traffic moves back to brand.com - phocuswright
12:00 suppliers should place ads on OTAs to drive traffic to brand.com
12:50 enhanced presence on OTAs positively impacts bookings on supplier channels - Embed Link:
One Comment
This session was very good and educational.
If you can present some information about mid scale to lower midscale hotals ( two stars ) about having a franchise is worth investing or to be independant hotels in a current market situation since wesites are more powerfull. As wesite technology is advancing at a faster rate, do you think own website and all other websites can help indepedant hotels as good as frachise hotels.
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