Third party and intermediary optimization: other channels of distribution

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From the course by ESSEC Business School

Demand management: Breaking down today’s commercial silos

156 ratings

ESSEC Business School

Demand management: Breaking down today’s commercial silos

156 ratings

Course 3 of 4 in the Specialization Hotel Management: Distribution, Revenue and Demand Management

The biggest challenge facing the hospitality industry over the next 5 years is the lack of integration between the key commercial disciplines of sales, revenue, distribution and finance and the negative impact this will continue to have on delivering asset value and maximum profitability. This course, spread over 4 key modules: Asset Management Demand Generation Digital Marketing Demand Optimisation aims to break down these commercial silos and reveal the journey from long-term asset development through to short-term profit tactics and how commercial teams can align themselves throughout the organisation. Created by SnapShot, this course is hosted by a group of experienced Industry guest lecturers in their fields of expertise and includes an ideal mix of accessible theory and practical exercises and simulations. SnapShot is a Hotel Demand Management company that specializes in helping hotels aggregate and use their data. We provide useful tools as well as innovative education and coaching services to empower hotels to take informed decisions in managing their demand to increase profits.

From the lesson

Online Marketing

Marketing is about making something known, desired and bought by the right public. While this hasn't changed, the means to achieve it has changed exponentially over the last two decades. As the customer searches for and finds your hotel, you will have to deal with the costs of distribution and how to sell through the most profitable channels to keep a healthy bottom line, while ensuring adequate visibility and top line.

Capture the visitors on your website6:22

Navigation and Reviews7:50

Third party and intermediary optimization: OTAs9:04

Third party and intermediary optimization: other channels of distribution3:15

Meet the Instructors

Peter O'Connor
Professor of information systems, Director of the MBA in Hospitality Management
Information systems
Alex Slors
Independent Hotel Asset Manager & Development Consultant
Asset Management
David Turnbull
Co-Founder and CCO
SnapShot
Brendan May
COO Livabout
Martin Soler
Independent Marketing Consultant
Lennert De Jong
Commercial Director
Citizen Hotels

[MUSIC]

Now that we have covered OTAs,

there are many other channels that hotels can use to distribute their rooms.

This hotel distribution technology chart shows the various categories of

distribution technology that exists.

One of the most important of these channels is the GDS.

GDS is the Global Distribution System,

which was created back in the 1960s by airlines to manage flight reservations.

It was used by travel agents and over time, hotels and car rentals were added to

give travel agents a central place where they could book complete travels.

These platforms work in a different way, in that most of them are text based and

don't emphasize visuals like you'd find on OTA.

Optimizing these platforms for your marketing requires a long but

important process of ensuring all of the data about your hotel is entered.

The room size, the amenities,

the location, distance to all the main tourist attractions and airports.

As location is an important qualifier for travel agents and

other travel managers, ensure you have as much information entered as possible.

This includes the distance between your hotel and

the bigger companies around, who invariably send staff to the hotel.

Optimizing for each of these channels is best done by working together

with people who use the service.

And who can explain their research and booking process.

Similar to the seven Cs of booking, paying the travel agents their commissions is

important and is best done by setting up a third party commission payment agency.

That will ensure payments are done on time to avoid the hotel being blacklisted.

There are many agencies that represent hotels in such channels, and

while they usually do a good job, they rarely know all the details of the hotel.

And it is recommended that these listings are verified for accuracy, and

more importantly, for completeness.

When optimizing third-party channels, as you don't control the advertising and

use of those channels, unlike your own brand website.

Focus on the content, spending extra time checking the content,

re-reading it, working it to read well is your main job here.

Put yourself in the shoes of a travel agent or a corporate travel agent and

read the contents you have uploaded.

Is it interesting?

Do you wanna read it?

Would you book that hotel?

Have you added every picture possible on the platforms that accept pictures?

Your best chance of being seen is great content, so do it well.

Note that there are advertising options on many GDS channels that can be used, but

before spending money on those make sure your hotel is well represented.

To conclude,

on third party channels the most important step in marketing is the content.

Text, images, reviews, and location based information.

The more quality content, the better you will do.

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