VTV Channel - A Vlog focusing on Hotel Merchandising Online » Cornell University

The Role of Opaque Sites in the Travel Planning Process

VFM Leonardo — Mon, 25 Jan 2010 14:00:50 +0000

Opaque bidding mechanisms are particularly attractive to value-seeking, non-brand loyal consumers who want 4 and 4 ½ star accommodations but don’t want to pay retail rates. Sites like Priceline and Hotwire that have opaque mechanisms offer hoteliers an opportunity to price into this segment while maintaining higher rates at retail outlets. Leveraging these sites typically results in improved RevPAR.

Tips on getting started with opaque sites:
- Start using them as soon as possible
- Give higher rates with restricted inventory
- Use them day-of or day-before

The Billboard Effect

VFM Leonardo — Mon, 11 Jan 2010 14:00:31 +0000

Chris Anderson, Assistant Professor at Cornell University shares the results of a research study “The Billboard Effect” conducted in partnership with JHM Hotels and Expedia. In the study, four properties were cycled on and off Expedia over a period of three months.

Here’s what you will learn in this episode:

- Hotel placement on Expedia results in a 20% increase in bookings on other channels
- Reservations made on other channels (call center, brand.com, other sites) offset reservations made on OTAs
- Rates attained while being listed on Expedia were about 2-3% higher

The bottom line: Hoteliers need to think of OTAs as marketing vehicles versus reservation engines.