Most of them will check 13 – 28 travel sites before deciding

2. 94 million Americanswill book online in 2012 Most of them will check 13 – 28 travel sitesbefore deciding 174.6 million searches were completed in Hotwire in 2011 Searchhas become local Social search for word of mouth Online Channels have grown by 25% in the last four years Multi-channel marketing is the norm All these have made a your job even more challenging……

3. This is how the Distribution Mix looks …which is giving Revenue Managers sleepless nights……..

4. They are worried about… • Increase RevPAR • Control costs of distribution/ • e-business • Increase exposure “Its all about occupancy, early sales….last thing you want is to be sitting there with an empty hotel with three weeks before check-in, and the only option you have are the OTAs.” 3 star hotel, San Francisco

5. Strategy has changed to….. • Focus on direct sales • Reducingcommission • More importance to GDS • and working out with more Travel • Agents & consortia contracts “OTAs are competing against each other and they need to market themselves better” NYC, 3 Star …in short hotels are going back to basics……

6. The marketing focus is now on… • OptimiseGoogle (Adwords & PPC) & SEO to bring more direct sales • Competing with OTAs • Yet to take serious note of social media

7. However this has created… • Continuous struggle with emerging channels, e.g. flash sites, bidding sites, social media • Uncoordinated sales strategy • Under-utilisation of the “Billboard Effect” …in other words confusion.

8. Technology is a saviour.... Channel management has become the norm Revenue management = Right distribution mix of exposure & cost Simplicity, accuracy, effectiveness and speedy delivery are the buzz words “We definitely added channels because we wanted to gain more exposure UK, 4 Star

9. Vision for future… • Direct sales, • More contracts, • Decreased distribution costs, and • Better revenue. “We strive for the same prices everywhere so that everyone can sell it as they can” 3 Star, Madrid

10. To hit the Bull’s eye hotels must… • Understand where the value of Direct Bookings derive • Have better and more flexible contracts with OTAs • Learn how to use and exploit the GDS’s • Install integrated and streamlined technology to better manage channels and productivity • Learn about Mobile and Social Media We are trying to create new budget for PPC. Different affiliations with websites, [… we are] meeting lots of partners, like blogs” France 4 star

11. So where do we look to the near future for OTAs? • Keep fresh Content • Regular updates will ensure changes are apparent • You are an active hotel • The hotel comes up in searches • Maintain Availability and Rate Parity • Travellers can see a transparent pricing structure • You commit to all OTAs making them work for you • Ranking improves – always on approach • Take advantage of package offers on websites • Assess Distressed Inventory • Use sites specialising in last minute sales • Set up Targeted Ads • Target ads with OTAs • Nurture relationship withYour Market Managers = More exposure on OTA

12. Re-look at your digital marketing campaign • Alternative PPC strategies • Approach PPC with a hyper-local perspective • Channel Selection & Focus – who’s in your market? • Gain the most profitable guest, add £5 if it means better quality • Knowing the value of Brand Reputation • Understand your guest, your packages, your competitors, your market position Amber Virani, Sales & Marketing Manager, 4C Hotels. “We quickly and easily analyse guest feedback from online reviews so we can understand where there’s a room to improve. We are now offering more promotions, special offers and implementing more marketing initiatives that seems to be of greater interest to our guests.”

13. What does the market say about Northern Ireland? • Tourism Ireland is targeting average annual visitor growth of between +2.4% and +5.7% • Room sales in Northern Ireland's hotels were 11% higher this June compared to last year* • Overall occupancy levels reached 78% - up from 70% last year. • Average hotel room occupancy for 2011 was greatest in 4/5 star hotels, 61% and lowest in 2 star hotels, 41% • Occupancy in Belfast remained flat in 2011 but could see around 6% growth in 2012 taking occupancy to almost 68% • ADR - anticipate further declines of 7.6% and 6.5% in 2011 and 2012 • Hoteliers could see four years of declines in RevPAR from 2009 to 2012 Tides are finally turning… Source: Annual Report 2011 Department of Enterprise, Trade and Investment (DETI) European cities hotel forecast PwC

14. The real scenario • What challenges are you facing? • What challenges are you overcoming? • What opportunities are you seeing for your hotel? • What is the region doing to promote itself? • What markets have you identified for business? • What is your group and corporate strategy? Source: Annual Report 2011 Department of Enterprise, Trade and Investment (DETI) European cities hotel forecast PwC

15. Gaining rate control - Pricing today (07/09/12) • Belfast hotel 4 • Expedia – nonrefundable £135 and £155 (with breakfast), cancellation £145 • On Hotels – 125.16 (inc breakfast) • Website - £120 advanced purchase, w breakfast £140, flexible with breakfast £150 Belfast hotel 1 • Expedia £69 • Own website £69 • Both non-refundable, nothing to encourage me to book on own website, non-inclusive breakfast, or cancellation. Prefer to book by expedia for points Belfast hotel 2 • Hotels.com £100 room only • On Hotels £79.03 inc breakfast • Own website: £120 – flexible booking, room only Belfast hotel 3 • Expedia - £125 • eBookers - £110 • Own website – No availability Source: Annual Report 2011 Department of Enterprise, Trade and Investment (DETI) European cities hotel forecast PwC

16. Channels that work – A suitable mix Source: Annual Report 2011 Department of Enterprise, Trade and Investment (DETI) European cities hotel forecast PwC

17. Getting to market – The Billboard effect for Direct Sales Source: Annual Report 2011 Department of Enterprise, Trade and Investment (DETI) European cities hotel forecast PwC

18. Getting to market – The Billboard effect for Direct Sales Marketing Efforts Source: Annual Report 2011 Department of Enterprise, Trade and Investment (DETI) European cities hotel forecast PwC

19. Top 9 Tips for Effective online distribution • Manage Rates Carefully • Do not ignore historical data • Invest in technology • Use effective channel partners • Think like a marketer • Automate allocation process • Experiment with different channels and segments • Measure and scale your online activities • Always focus on a mutual win, build trust and loyalty Benchmarking Channel Partner Rates & Inventory GDS

20. Gain full control over pricing, position & visibility Rate Shopping, Channel Management, Revenue Optimisation and Reputation Management solutions for hotels of all sizes Hoteliers analyse market positioning by comparing competitor rate information from websites & hotel sites. Quick & efficient management of online distribution channels through one easy to use interface. Assess market competition and position, propose rates and allows for the automatic update and monitoring of online distribution channels. Consolidate customer reviews from connected review websites. Analyse, review and respond to customer feedback from a single application. Options Allocation Management / Split Allocation Alert Distribution / Shopping Reports • GDS shopping and distribution • Online advertising • Facebook booking engine • Shopping Reports – Daily & Weekly • Extranet Reports – Arrival reports for selected websites • Booking Reports – Created bookings from selected websites • Control of allocation across all chosen websites • For low & sold out allocations

21. Thank you ryanh@erevmax.com +44 (0) 7825 661575 Twitter/ RyanCHaynes Pinterest/ RyanCHaynes Blog/ ryanchaynes.blogspot.com Facebook/ RyanCHaynes LinkedIn/ Ryan Haynes