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Ancillary Revenue Commission based solutions for DMOs February 2011

Ancillary Revenue Commission based solutions for DMOs February 2011. Ancillary revenue. Hot item for airlines. Source: IdeaWorks. Ancillary revenue & hotels. Cross selling / upselling Spa, Golf, sea sports, kids clubs, dinners, wine tastings etc. Commission

jason-velasquez
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Ancillary Revenue Commission based solutions for DMOs February 2011

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  1. Ancillary RevenueCommission based solutions for DMOsFebruary 2011

  2. Ancillary revenue

  3. Hot item for airlines Source: IdeaWorks

  4. Ancillary revenue & hotels • Cross selling / upselling • Spa, Golf, sea sports, kids clubs, dinners, wine tastings etc. • Commission • sightseeing, tickets for events, concerts, theatre etc. • Media

  5. Ancillary revenue & hotels

  6. Process of buying travel Dreaming Enthusing RecommendingEvaluating ComparingReviewing Travelling VisitingEnjoying Selecting Planning Booking 2/3 weeks up to 3 months

  7. Process of buying travel Dreaming Enthusing RecommendingEvaluating ComparingReviewing Travelling VisitingEnjoying Selecting Planning Booking When do people book: HotelsAirline Up to several months Up to one month Car rental Sightseeing Dinner reservations

  8. Process of buying travel Dreaming Enthusing RecommendingEvaluating ComparingReviewing Travelling VisitingEnjoying Selecting Planning Booking DMO Core Business

  9. Process of buying travel Dreaming Enthusing RecommendingEvaluating ComparingReviewing Travelling VisitingEnjoying Selecting Planning Booking DMO Full range

  10. Process of buying travel Dreaming Enthusing RecommendingEvaluating ComparingReviewing Travelling VisitingEnjoying Selecting Planning Booking DMO Full range Airlines

  11. Process of buying travel Dreaming Enthusing RecommendingEvaluating ComparingReviewing Travelling VisitingEnjoying Selecting Planning Booking DMO Full range Airlines Conversion rate for third party products between 0.5% and 3%

  12. Travel search: the DMO site In general, how useful are the following types of web sites for researching a possible vacation destination? Rate each web site using a 5 point scale Source: PhoCusWright 2009

  13. Why the DMO site? • Independent • Lot’s of quality content which • is searchable (text, images, videos, blogs etc.) • keeps the (online) conversation going • Closest to suppliers, the setting and the place • Trustworthy • They are official

  14. DMOs: why online booking systems? • Good position to ‘close the deal’ • Market failure • Measure the effectiveness of your marketing • Market intelligence • Dynamic Packaging

  15. DMOs: why cautious with online booking systems? • Provide information, not to make bookings • No commercial culture • Competition • Legal restrictions • Commercial message may disturb the general message • Commercial income? Cuts in public funding

  16. DMOs: sources of income • Fees on sales of bookings • Merchandise shop • Affiliation programmes • Advertisements • Context sensitive Ads • Advertorials that look like editorials • Through newsletters by including some editorial • Sell enhanced entries to tourism suppliers

  17. Ecommerce & DMOs: lessons learnt • Visitbritain • Englandnet established in 2002: the national tourism database • 2004: formal complaint for illegal state aid and unfair competition; • Englandnet was wrapped up and integrated into visitbritain; • Today they do not handle financial transactions or visitor’s personal and financial details • Visitscotland • Established as a PPP in 2002 -> today public again; • it did not promote all accommodation providers; • overestimated industry’s appetite for online booking systems; • High number of visitors, low conversion • High cost leading to negative own capital • Web site: www.reclaimvs.com • Too optimistic business plan

  18. Examples

  19. Visitbritain

  20. Visitbritain

  21. Visitbritainshop

  22. Visitbritainshop

  23. Visitnorway (Q1 2011) / Visitsweden (online)The National Booking Switch DMS Dest system Property Extranet to DMS Property PMS direct connect PMS Direct DMS Dest system Pegasus Switch CRS Hotel group Sub headline Visitnorway.com 10 million visitor Hotel group Sub headline CRS Synxis, Rezidor, Pegasus RezView Flight Low cost carrier CRS CRS Amadeus Flight Flight Regular flight White label Regional DMO OpenJaw Ferry & train Ferry Norwegian Travel Swith And National Booking Train Amadeus Ferry & train Events Sub headline iTicket rezView Local vendor API (DMO, Supplier) Activities Sub headline DMS Dest system

  24. Visitnorway: search control examples

  25. Visitfinland

  26. DMOs in the Mediterranean

  27. Spain.info Hotel guide

  28. Spain.info Hotel guide

  29. Spain.info and start all over…

  30. Spain.info second window opens…

  31. Spain.info

  32. Spain.info After clicking “book” third window opens…

  33. Spain.info and then the booking page opens in Spanish…

  34. Visitcyprus

  35. Goturkey.com - English

  36. Goturkey.com • Flights & Packages lead to Lovelyturkey • Hotel leads to watchb4go.com

  37. Enit.it / italia.it

  38. Enit.it / italia.it

  39. Enit.it / italia.it

  40. Enit.it / italia.it

  41. Enit.it / italia.it

  42. Enit.it / italia.it

  43. Visitportugal.com

  44. Visitgreece.gr

  45. FranceGuide

  46. FranceGuide

  47. FranceGuide You do not see yet at which provider you are going to book…

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