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INSIGHTS DECK

BUILDING A DIVERSIFIED
HOTEL DISTRIBUTION
STRATEGY IN THE ERA
OF COVID-19
DECEMBER 2020

Presented by

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BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 2
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 3

EXECUTIVE LETTER
Diversify hotel distribution to master the evolution of guest experience in
the era of Covid-19

For the hospitality industry, historical norms and patterns pre-Covid-19 are no longer valid as predictors
in the new world. New patterns are also emerging in the recovery that are unrecognizable, and the
data we are seeing today isn’t telling us much about tomorrow either. Serving more than 42,000
properties around the world, Sabre Hospitality Solutions helps hoteliers rethink their business and focus
on next-generation technologies to implement a holistic buying experience that delivers distinct and
dependable guest experiences.

We understand the complexities of the market today and the challenges that hotel brands face, as well
as the upended rules of hotel distribution. We know that hoteliers are working constantly to allocate
limited resources in support of core business strategies, such as channel optimization. Considering Frank Trampert
SVP & Global Managing
changes in traveler behavior, hoteliers need to increase demand for hotels' services again. They also face
Director, Commercial,
a difficult choice between securing short-term revenue and cash flow versus longer-term profitability Sabre Hospitality Solutions
and branding.

Paradigm shifts within the industry are driving new imperatives for hoteliers, and navigating them
successfully starts with a diversified distribution strategy. That means hotels must be present in all travel booking channels and consider the
emergence of new customer types, while stimulating demand in a smart, flexible, and even creative way.

Hoteliers must master distribution in the era of Covid-19. Having a partner that deeply understands distribution makes a world of difference.
At Sabre, we are that partner -- distribution is at our core. We believe that an intelligent retailing approach is key to mastering and improving
the evolution of the guest experience. Armed with guest data, unique physical spaces, and a local perspective, hotels are in a prime position
to open up many new revenue streams, increase loyalty and trust, and appeal to a wider segment of guests. Sabre can help with that:
building resilience in times of recession and increasing performance in periods of growth.
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 4

TABLE OF CONTENTS
ABOUT SKIFT

5 Introduction Skift is the largest industry intelligence platform, providing


Media, Insights & Marketing to key sectors of travel.

SkiftX is Skift’s in-house content marketing studio, working


6 Part One: The State of Hotel Demand collaboratively with partners on integrated projects
including webinars, video, research, and live events.

15 Part Two: Understanding the 2020 Hotel Consumer Visit skiftx.com to learn more or email at skiftx@skift.com.

21 Part Three: Defining the New Rules of Distribution in 2020 ABOUT SABRE CORPORATION

Sabre Corporation is a leading software and technology


company that powers the global travel industry, serving a
31 Part Four: Tips to Build a Diversified Distribution Strategy wide range of travel companies including hoteliers, airlines,
travel agencies, and other suppliers. Sabre provides retailing,
distribution and fulfilment solutions that help its customers
drive commercial performance and enable operational
excellence on a platform that works. Through its leading travel
marketplace, Sabre connects travel suppliers with buyers
from around the globe. Sabre’s technology platform manages
more than $260B worth of global travel spend annually.
Headquartered in Southlake, Texas, USA, Sabre serves
customers in more than 160 countries around the world. For
more information visit www.sabre.com.
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 5

INTRODUCTION

Covid-19 has upended the old rules of hotel distribution. Hotel


demand is at record lows (but recovering), consumer habits and
priorities are evolving, and the old rules of hotel distribution
acquisition are in flux.

How should hoteliers proceed in this chaotic, rapidly evolving


environment?

In the following guide, Skift and Sabre Hospitality review the


emerging best practices hotels need consider to ensure a
diversified distribution playbook that will succeed in this period
of rapid change.
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 6

1.

THE STATE OF
HOTEL DEMAND
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 7

Global Booking Trends


The impact of the pandemic started appearing in February across all distribution channels.

2020 Global Booking Trends Across Channels

1. Biggest drop in bookings:


February - April 2020

2.
As travel came to an abrupt halt
globally, OTAs saw the steepest
decline in bookings compared
to GDS and booking engine
channels

3.
Leisure travel takes priority
over corporate travel in the
short term. Booking engine
channel shows faster recovery
while GDS bookings show the
slowest recovery
Source: Sabre Hospitality, 2020
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 8

State of the Hotel Industry in 2020 and Beyond


STR estimates of 2020 US performance across measures like demand, occupancy, ADR, and RevPar illustrate the scope of the
challenge facing hotels. Still, 2021 estimates give hope for businesses as they think about the potential for recovery.

US Forecast
Key Performance Indicators
(% Change vs. Prior Year)
Outlook
2019-2020F-2021F
Metric 2019 Actual 2020 Forecast 2021 Forecast

Supply +2.0% -3.7% +5.8%

Supply (Total +2.0% +1.4% +1.3%


Room Inventory)*

Demand +1.9% -38.9% +32.2%

Occupancy* -0.1% -39.7% +30.5%

ADR +0.9% -20.9% +5.6%

RevPAR* +0.8% -52.3% +37.9%

*Reflects Total-Room-Inventory (TRI) methodology, which assumes no temporary hotel closures.

Source: STR
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 9

Regional Booking Trends: North America


In North America, all distribution channels saw a spike in recovery in May and June, led by the brand.com (booking engine).
However, all channels slowed down starting in July, aligning with a surge in Covid-19 cases. The data suggests hotel
bookings are highly sensitive to consumer perceptions of travel safety.

2020 Regional Booking Trends Across


Channels - North America Average month-over-
month growth in hotel
bookings May-Aug 2020:

Booking Engine 60-70%

GDSs 40-50%

OTAs & Tour Managers 40-50%

Source: Sabre Hospitality, 2020


BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 10

Regional Booking Trends: Europe, Middle East, Africa


In the EMEA region, all channels have shown meaningful recovery from their lowest points in April. The booking engine
channel showed the quickest turnaround in May, but has slowed since. OTAs on the other hand are maintaining the
recovery pace better month over month. All channels had flat growth in August as the summer season (typically a busy
tourist season) came to an end.

2020 Regional Booking Trends Across


Channels - Europe, Middle East, Africa Average month-over-
month growth in hotel
bookings May-Aug 2020:

Booking Engine 80-90%

GDSs 50-60%

OTAs & Tour Managers 70-80%

Source: Sabre Hospitality, 2020


BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 11

Regional Booking Trends: Asia-Pacific


In the APAC region, the hotel brand.com channel lead the recovery from the lowest point in April. This was only marginally
better than OTAs. Although overall booking growth slowed down as of July, the OTAs and booking engine channels are
helping keep the recovery moving ahead.

2020 Regional Booking Trends Across


Channels - Asia-Pacific Average month-over-
month growth in hotel
bookings May-Aug 2020:

Booking Engine 40-50%

GDSs 30-40%

OTAs & Tour Managers 40-50%

Source: Sabre Hospitality, 2020


BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 12

Regional Booking Trends: Latin America


In Latin America, the GDSs hit the lowest point in May, followed by a small spurt of recovery in June. But growth has slowed
down since then. The booking engine channel has maintained a steady relative recovery rate month over month.

2020 Regional Booking Trends Across


Channels - Latin America Average month-over-
month growth in hotel
bookings May-Aug 2020:

Booking Engine 30-40%

GDSs 40-50%

OTAs & Tour Managers 40-50%

Source: Sabre Hospitality, 2020


BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 13

Three Key Factors That Will Impact Recovery

US Hotel Revenue Per Available Room, Nominal $

1.
Change VS 2019, %

Epidemiological realities of
90 Scenario 1 +2%
the virus (immunity/vaccine
80 and mortality/cure)
70 Scenario 2 -20%

2.
60

50 Government policy
40
developments (restrictions
on movement and social
30
interaction)
20

3.
10

0 Consumer sentiment and


2019 2020 2021 2022 2023
comfort with higher density
Scenario 1: U-shaped Scenario 2: L-shaped travel and accommodation
recovery (virus contained, recovery (virus recurrence,
growth returns) slow long-term growth,
muted world recovery)

Source: McKinsey, Hospitality and Covid-19: How Long Until No Vacancy for US Hotels?
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 14

KEY TAKEAWAYS HOTEL DEMAND

Hotel demand recovery depends on a variety of factors:


Geographic region of the property
Extent of local Covid-19 outbreaks
Traveler segments impacted (ex: leisure vs. business)
Perceived safety of travel, which fluctuates based on
infection rates
The industry has seen a slow, but steady, recovery since April 2020
across OTAs and the hotel brand.com channels
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 15

2.

UNDERSTANDING
THE 2020 HOTEL GUEST
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 16

Hotel Guests Shift Their Accommodation Needs

In the next 6-12 months, which of the following types of


trips do you predict you will be willing to take in light of
the Covid-19 outbreak?
Travel planning today has changed,
Consumers forcing hotels to adapt marketing
targets and priorities for acquisition
Local trips within channels
47%
driving distance

Consider the data from a spring 2020


Leisure trips 44%
Skift consumer survey, which found
a growing focus among travelers
Domestic trips 44% on local driving destinations and
domestic leisure trips
International trips 26%
Meanwhile traveler demand for
Business trips 25% business trips, group trips, and
international travel remains low
No trips of any type 12%

Source: Skift consumer travel survey, April 2020


BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 17

Countering Traveler Interest in Short Term Rentals: How Should Hotels Adapt?
Interest in short term rentals appears to have increased in 2020, but the reasons for the interest remain unclear. Is it simply
perceptions related to social distancing? Hotels may be able to counteract this perception by promoting amenities like
contactless services, hygiene protocols, and convenience factors.

Source: https://www.usatoday.com/story/travel/hotels/2020/08/26/airbnb-vrbo-more-popular-than-hotels-during-covid-19-pandemic/5607312002/
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 18

Guests Are Booking Closer to the Date of Travel

US Average Booking Window Trends


At least in the short term, marketing and
promotion must be adjusted to account
45%
for shorter guest booking windows
40%

35% Average booking windows of under one


week continue to make up over 56 percent
30%
of searches, while those of over one month
25%
make up less than 16 percent

20%
Starting in March, there was a significant
15% spike in the 0 to 1 day average booking
10%
window bucket, along with a drop within
the 2-7 and 8-30 day booking windows
5%

0% Average booking window trends have


0 to 1 2 to 7 8 to 30 31 to 60 61 to 90 91+
remained relatively stable through the end
of September
2019 AVG w/o 8/24 w/o 8/31 w/o 9/7 w/o 9/14

Source: Koddi
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 19

Hotels Are Adapting Their Marketing to Satisfy Changing Guest Needs

“ YOU ALMOST HAVE TO TAKE A MARKETING


APPROACH FIRST. WHAT DOES THAT LOOK
LIKE COMING OUT OF THE PANDEMIC? IS IT
CLEANLINESS, AMENITIES OR A PHYSICAL
PLAN? YOU ALMOST HAVE TO REDO
YOUR [COMPETITIVE] SET ANALYSIS TO
UNDERSTAND YOUR POSITIONING. IS THERE
SOMETHING YOU CAN HIGHLIGHT, CHANGE,
OR CAN YOU DO SOMETHING SMALL TO
POSITION YOURSELF BETTER?

- Johnathan Capps, vice president of revenue,


Charlestowne Hotels

Source: HR 2020 Special Report


BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 20

Hotels Need to Update Their “SWOT” Analysis


Many hotels are re-evaluating their marketing strategy in light of Covid-19. One way to do this involves a well-known business
analysis technique called “SWOT”: (strengths, weaknesses, opportunities, threats). Among the key questions to consider:

Strengths: What are the property features or


amenities travelers care most about knowing?

Weaknesses: What does the property lack that


travelers need right now?

Opportunities: Which traveler groups is your property


best positioned to target and appeal to right now?

Threats: Who are the hotel’s competitors? Other


hotels? Short-term rentals?
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 21

3.

DEFINING THE
NEW RULES OF
DISTRIBUTION
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 22

Hotels Enter a New Era for Hotel Distribution

Channel management strategies in flux: the historic


distribution rules for selling via OTAs, the GDS, and on brand
websites are once again up for grabs thanks to Covid-19

Prioritizing between cash flow, brand and profitability:


hotels also need to consider short-term revenue (get people
in beds) versus demand in relation to longer-term goals like
profitability and branding
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 23

Hotel Executives Confirm Shifts in Booking and Distribution

What changes, if any, are you considering to your company’s booking and distribution strategy?
Hotel Executives
No plans to Considering this change Already made/making
change in the future this change

Creating more flexible


cancellation/refund policies
19% 37% 45%

Revising our revenue


19% 43% 39%
management strategy

Revising our digital distribution strategy


23% 43% 33%
(where we sell online)

Adding new/more frequent room


29% 46% 24%
discount promotions

Removing/reducing minimum length 39% 36% 26%


of stay requirements

Removing/reducing room deposit 41% 38% 21%


requirements

Source: Skift hotel executive survey, April 2020


BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 24

Hotels Are Anxious to Drive Demand, But Need to Do It Strategically

“ ONE OF THE THINGS THAT I STICK BY WHEN


I'M HAVING ONE-ON-ONES WITH SOME OF
OUR LARGER CUSTOMERS, IS DISCOUNTING
DOES NOT CREATE DEMAND. LET US HELP
YOU GO FIND DEMAND, AND THEN OPTIMIZE
YOUR CHANNEL STRATEGY AROUND THAT.

- Ellis Connelly, general manager business development,


North America West, Sabre Hospitality Solutions
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 25

Old Pricing Rules Don’t Always Apply

“ THE DEMAND THAT WE SAW WAS FROM


PEOPLE WHO HAD TO TRAVEL, NOT THAT
THEY WANTED TO TRAVEL, SO IT DIDN'T
MATTER WHAT PRICE IT WAS. SAID ANOTHER
WAY, LOWERING THE PRICE DIDN'T MAKE
THEM TRAVEL MORE, OR IT DIDN'T MAKE
THEM COME TO YOUR HOTEL.

- Vikram Pradhan, group vice president, global revenue


management, Wyndham Hotels and Resorts
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 26

Distribution Priorities are Shifting Post-Covid

Top 3 Segments Pre-Covid-19

51%
Corporate
Contracted
50%
Third Party
(Non Restricted)
39%
Direct
(Non Restricted)
1. Direct booking becomes
even more critical

Top 3 Segments Post-Covid-19


2. Corporate contracted still
key as well

47% 46% 44%


Direct Direct Corporate
Promo Rates (Non Restricted) Contracted

Source: otainsight.com
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 27

Opportunities to Experiment With New Channels

“ WHAT DO YOU DO TO CREATE DEMAND? WHAT TYPE


OF ADVERTISING? WHAT TYPE OF DIGITAL MARKETING?
WHAT ARE THOSE THINGS THAT YOU NEED TO DO
TO HELP CREATE DEMAND? YOU HAVE TO BE SMART
AND SAVVY ABOUT GOING OUT AND FINDING THAT,
WHETHER IT'S DRIVE MARKET— WHETHER IT'S EVEN
LOOKING AT PUSHING DRIVE MARKET FURTHER OUT
— BUT THERE'S A LOT OF OPPORTUNITIES TO REBUILD
YOUR REVENUE STRATEGY AND FIND NEW CUSTOMERS.

- Ellis Connelly, general manager business development, North America West,


Sabre Hospitality Solutions
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 28

Finding a New Equilibrium - OTA Trends

As several economies started opening


Unique Visitor Traffic to Major OTAs up in June, the data shows a surge
in unique visitors to the key OTA
sites: a 45-55 percent growth in June
compared to May

With the resurgence of infection


and reinstatement of government
restrictions, this turnaround spike
seems to have slowed down as
travelers are hesitant to confirm
bookings

As economies open up, and public


sentiment toward travel safety
Feb Mar Apr May Jun Jul Aug improve, we expect OTA channels to
tap into that demand surge quickly

Source: SEMRush.com. OTAs analyzed: Booking.com, Expedia.com, Trivago.com, TripAdvisor.com, Ctrip.com


BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 29

Finding a New Equilibrium - Direct Booking

Trends on Hotel Brand.com - as % of Jan-2020 On hotel brand.com, shopping


(Pre-Covid-19) Level interest, as told through page views, is
returning to near pre-Covid-19 levels

However, conversion rates still lag


overall

This suggests that consumer


motivation and desire to travel is
still there, even if customers are still
hesitant to commit

Hotels must ensure their site content


and voice are relevant and up to date
Jan Feb Mar Apr May Jun Jul Aug
with what is important to travelers
now, so when they do return and
convert, the hotel websites are viewed
Average Daily Conversion Rate Average Daily Page Views as a trusted source

Source: Google Analytics for SynXis Booking Engine


BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 30

Finding a New Equilibrium - Google Hotel Ads

“ WE ARE BEING MORE TARGETED IN HOW


WE USE GOOGLE. SO FOR EXAMPLE, OUR
SEARCH SPEND HAS BECOME MORE
EFFICIENT … WE'RE ALSO USING OTHER CRM
TECHNIQUES AND TOOLS TO BID ON CERTAIN
KEYWORDS IN CERTAIN AREAS AND CERTAIN
MARKETS VERY, VERY DIFFERENTLY THAN
WE'VE DONE BEFORE.

- Vikram Pradhan, group vice president, global revenue


management, Wyndham Hotels and Resorts
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 31

4.

TIPS TO BUILD A
DIVERSIFIED
DISTRIBUTION
STRATEGY
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 32

KEY DISTRIBUTION STRATEGY


THEMES FOR 2020

1. Flexibility is critical: at a time of uncertainty for all hotels, it’s


important to stay flexible in selecting distribution channels and
promotional techniques

2. Understanding and personalizing based on guest needs:


traveler preferences are in flux, making it all the more important
to understand and address guest needs

3. Direct booking can help: traveler visits to hotel websites


were among the quickest channels to recover, suggesting an
opportunity for further focus on this booking method

4. Doing more with less: hotels should focus resources on the


best performing campaigns to maximize the value of their
promotional efforts
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 33

International 5-Star City Hotel: Focusing on Flexibility

CHALLENGE

As they look for ways to boost bookings and conversions in Covid-19 locations post-
lockdown, many hotels have struggled to decide on the optimal distribution channels to
choose to maximize the effectiveness of promotional efforts
13%
increase in campaign
A 5-star city hotel brand with locations in France, Italy, the U.K. and the U.S. needed conversions
assistance deciding where it should focus its limited advertising spend to help drive
these post-lockdown bookings

SOLUTION

The hotel brand partnered with Sabre's Digital Experience (DX) team to help optimize their
metasearch campaigns between June - September 2020

The Sabre DX team's optimizations, combined with returning consumer demand, lead to a
119%
increase in bookings for
13 percent increase in campaign conversions and a 119 percent overall increase in bookings
Jun-Sept 2020
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 34

Alila Hotels: Better Personalized Advertising to Satisfy the


Changing Needs of Guests
Alila Hotels and Resorts is a luxury hospitality brand focused on offering intimate cultural interactions to guests staying at
its curated collection of hotels in Asia, the Middle East, and North America.

CHALLENGE

The behaviors and preferences of guests are changing because of Covid-19, as


travelers adjust their priorities and seek out new types of hospitality experiences

Many hotels don’t always have a complete picture of their guests, preventing them
from knowing how to target them with advertising and drive more bookings

SOLUTION

Alila Hotels and Resorts faced a similar situation several years ago. The brand partnered
with Sabre to implement a new targeted, user-based advertising system built on the
82%
increase in website
SynXis platform. The new system created a centralized location for guest data and
enabled dynamic content for digital ads
revenue
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 35

Five-Star Irish Countryside Resort: Doing More With Less

CHALLENGE

2020 has stretched hotel resources like never before. With many properties operating
with fewer staff and smaller budgets, they face tough decisions about how to continue
promoting themselves to potential guests
3x
increase in average
One hotel facing this challenge is a 5-star property located in the Irish countryside, which monthly bookings
was trying to decide on how to restart its Google Paid Search campaigns in June 2020

SOLUTION

The property partnered with Sabre to help optimize its spending strategy for Google Paid
Search, resulting in a significant improvement for the same dollar value investment used
prior to the pandemic
373%
increase in bookings
Average monthly bookings were up by a factor of three compared to February 2020. The
optimized campaign also resulted in a 373 percent increase in booking revenue when
revenue for Q3 2020 vs. Q1
comparing Q3 with Q1 2020
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 36

New Victorian: Optimizing for Direct Booking


The New Victorian Hotel Group is an independent hotel chain in Nebraska with 6 hotels and 459 rooms, offering all the
amenities of large-scale properties at an economical price.

CHALLENGE

Many hotels have found that in 2020 the hotel brand.com booking channel has been one
of the best performing booking channels

Independent brands like New Victorian, even as recently as 2018, were facing increasing
competition from larger chains, who often have access to more sophisticated website
booking tools and may be quicker to lower rates in response to market demand

SOLUTION

The New Victorian Hotel Group partnered with Sabre to upgrade to the SynXis Booking
Engine several years ago, offering a more flexible, scalable, cloud-based booking solution
to further optimize their website booking experience 37%
The new strategy helped the hotel group increase its year-over-year direct bookings by YoY increase in
nearly 40 percent alongside lower bounce rates and increased conversions direct bookings
BUILDING A DIVERSIFIED HOTEL DISTRIBUTION STRATEGY IN THE ERA OF COVID-19 INSIGHTS DECK | DECEMBER 2020 37

LIKE WHAT YOU SEE?


Skift is the largest industry intelligence platform, providing Media, Insights & Marketing to key
sectors of travel.

Through daily news, research, podcasts, and Skift Global Forum conferences, Skift deciphers
and defines the trends that matter to the marketers, strategists, and technologists shaping the
industry.

SkiftX is Skift’s in-house content marketing studio, working collaboratively with partners like
Mastercard, Hyatt, Adobe, Lyft, and many more on custom projects to engage the world’s largest
audience of travel influencers and decision makers.

Visit skiftx.com to learn more or email at skiftx@skift.com.

Carolyn Kremins
President, Skift
ck@skift.com
212-564-5830

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