Motel online sales

For some motel operators, selling inventory online goes against the personalised and controlled approach that they have used so effectively before. There is a nervousness of overexposing themselves to the world (including their competitors!) and opening up the risk to the much feared double booking scenario.

Yield management in the accommodation industry involves identifying market segments, manipulating tariff, room types available, minimum stays and packaging inclusions etc. There is still a mentality in the motel industry for tariffs to be set in stone for 12-months in advance and maintained regardless of demand. The one size fits all, first-in-first-served price setting process makes it easy for the operator but does little to maximise yield.

The popularity and success of selling online inventory is slowly changing the way motels set tariff, package rooms and manage yield. But is this happening fast enough? Hotels have always been the market leader in the art of selling rooms on-line and have heavily invested in distribution channel marketing and yield management. In our opinion, motels are moving forward but are still woefully behind the hotel sector in this area.

In recent years there has been a steady lift in room nights sold on-line and hotels seem to be benefiting more from this consumer shift in the buying process than motels. We believe that this is one major reason why motels have lost their once dominant position in the market place and now lag behind the hotel sector in the race for the most room nights sold.

There seems to be difficulty in the motel sector in understanding and maximising the relationship with the property's PMS (Property Management System), channel management and individual on-line resellers. There is however an armory of cost effective solutions now available.

The recent issue of Tourism Business Magazine has an excellent article by Steve Davies from Accommodate Me that outlines the online booking systems and channel management available for New Zealand operators.

Michelle Ackers of ADEPT Marketing has summarised the following key points from the print article and has added links to the major suppliers:

Key Popular Systems

What you choose to enable online bookings in your website and receive bookings from other online sales channels will depend on your business products, size and strategy – for the use of a system do you prefer paying set regular amounts or nothing upfront with a commission on success model?

Research the differences, the costs and what works best for your business. In addition to the below considerations and others mentioned in the full article, I suggest you also look at how easy the booking system is to use for your guests – can they easily view your availability and then book and pay for it without too many clicks or forms to fill in? It’s ease of use will be a large factor determining it’s success in your website.

Here are some options:

AA Travel – Only available for those who advertise online with AA Travel. Free to set up as an advertiser – 1.75 to 3.75% for bookings. Sales channel also include AA Centre retail network. AA advertising costs range between $299 and $9000+ per year.

Availability – Uses ResBook online inventory management system popular with B&B’s and Lodges. Can integrate with resellers sites but leaves it up to the tourism operator to negotiate terms and commissions. Starts at $480 per year and no commissions.

Bookit – One of the few to offer a solution for accommodation, activities, tours and car rentals. Growing number of sales channels including key sites such as NZ Tourism Guide, Yellow Maps and some Regional Tourism Organisations. Free to use system, 6% fees for bookings in own website plus commission from sales channel bookings.

Jasons/Holiday Guide – Using the Holiday Guide System it is commission free with monthly charges starting at $10 per month. Can be used in your own website, and if a paid advertiser on the Jasons website.

Seekom – Their IBEX system is for accommodation, activities/tours and car rentals with comprehensive options for selling via wholesalers and retailers. Also offers effective sales channel management for online availability and pricing updates. Connects to popular property management system (PMS) Callista with more to come. Pricing from $39 per month.

SiteMinder – Australian based but offering effective channel management for a wide range of NZ, Australian and international online sales channels, plus have more recently added “The Booking Button” for online bookings in your own website. Channel management starts from $44 per month with additional per month for the Booking Button. No commissions. (Sales Channels will still charge their commissions however).

Tourism Exchange – Air NZ owned, the newest system on the market offering integration with your property management system or use of their Eviivo Frontdesk to manage all your bookings. Provides online bookings on your own website and from their sales channels including Air NZ (online, retail and wholesale channels) with many more promised to come. Monthly charges from $0 to $79 depending on room numbers, 6% fee plus cc charges for your website bookings, plus commissions for sales channels bookings that you opt in to.

Vianet – Now Trade Me owned offers a booking tool for your own website and comprehensive network of sales channels including Travelbug, tourism websites and several Regional Tourism Organisations. Free to use the system, 3% fee for bookings from your own website plus commissions from sales channels you opt in to.

Motella Panoramic Slideshow Widget

We have noted that the "Motella Panoramic Slideshow Widget" (as pictured below) has been appearing on various online motel and travel industry sites.

Why not spice up your website or blog and increase traffic by adding this dynamic feature. The Motella Panoramic Slideshow Widget will make your website or blog update "every day" with fresh new content.

Make your online presence more engaging and enjoyable for your readers to return often and consume.

For instructions, simply: CLICK HERE

Wowzio

grab this · travel blog

Exhibitionist hotel guests go wild

The view from room 9.24 at The Standard Hotel New York

If your accommodation complex is situated on a busy thoroughfare and has guest rooms with street facing windows, we suggest that you give serious consideration to a marketing idea from The Standard NYC.

The recently opened Standard Hotel is located in the heart of the Meatpacking District, "elevated above the High Line. With 337 rooms on 18 floors, the Hotel offers outstanding panoramic views of the Hudson and NY City."

The hotel caused a bit of a stir by encouraging guests to send them their naughty snaps taken while staying at the hotel. By all accounts guests enthusiastically obliged and the resulting publicity was widely reported in the mainstream media and caused a buzz around social networks. It is unclear what the hotel did with the pics? Rest assured dear readers that "Motella" will be scouring the internet in search of any objectionable material as part of our investigative brief.

Now, the Standard has decided to up the anti and embark on a new bolder publicity campaign by encouraging guests to put their sexual selves on display making use of the impressive floor to ceiling windows in the guest rooms.

This latest push for publicity is vulgar, tacky.... and is probably why we like it so much.

28 August 209
www.usatoday.com

I have to laugh about the headline I wrote last March about the ultra-hip, modern Standard Hotel in New York City's: "Can The Standard hotel set new standards for NYC?," Well, it turns out that the glass-paneled hotel really has set new standards, but not for what you'd think...

The hotel - one of André Balazs' three Standards - encouraged exhibitionist guests to go wild in front of their floor-to-ceiling glass room windows, according to a New York Post report from earlier this week. People have been seen dancing naked, toweling themselves off and more, attracting throngs of photo-snapping voyeurs below and tons of (free) media buzz.

The Post outed the exhibitionist behavior as a publicity stunt encouraged by the hotel earlier this week. The Post story quotes a bellhop who told them that when the hotel had opened, staffers had been encouraged to pose in front of the windows naked and semi-dressed.

"One of the managers even got naked in a room, and filmed it -- they were considering a live feed for the Web site," the staffer told the Post. "She's an exhibitionist, too."

The Standard's now-changed Facebook page also beckoned daring behavior: "We encourage you to exercise your inner exhibitionist. Please share your intimate, and explicit photos with us — those floor to ceiling windows aren't just for the views."

Source: Click HERE
Hat tip: www.twitter.com/OysterHotels

Wotif.com setting the pace

Good news is rare in the travel industry at the moment, so it is pleasing that a major player is bucking the trend. This week, popular accommodation reseller Wotif.com Holdings Limited announced a record end of year financial result.

Although the travel industry is in recessionary mode, there are a few businesses that are taking advantage of the subtle changes in the market.

It would appear that the economic downturn has been good for Wotif!

Wotif have been extremely successful establishing themselves as a one-stop accommodation brand for consumers that are seeking "last-minute accommodation specials or great deals in advance". The rise of Wotif achieving a high brand recognition and business success with minimal investment in the mainstream media has been remarkable.

What are some of the current market trends that may have assisted Wotif?

Those consumers that have taken advantage of deep discounting occurring in the airline industry would have also been seeking comparable value in accommodation. Wotif with its increasing brand awareness is well poised to take advantage of this.

It is evident that baby boomers are cutting back the most in travel, however there is growth in the 18-34 market that is spending more on travel and would be more inclined to book on-line than any other demographic.

The buzzword in the travel industry at the moment is “staycation.” The concept of the public traveling shorter distances and staying for shorter lengths of time appears to be a growing trend. Online accommodation sites such as Wotif are being used for inspiration.

The nature of commoditising accommodation into an easy intuitive purchase has attracted consumers to the web. Wotif appeals to leisure consumers that are looking for value and are making increasingly last minute spontaneous travel arrangements.

There appears to be anecdotal evidence that business travellers are seeking accommodation online as they look to control their overall travel spend and compare value. Managing director and CEO, Robbie Cooke claims that Wotif has taken advantage of this trend and has experienced an increase in reservations from the corporate space.

26 August 2009
NZ Press Release: Wotif.com

Wotif.com Holdings Limited today announced a 26% surge in after tax profits, delivering a record $43.5 million result. This performance was fuelled by a 29% increase in room nights sold, as consumers migrated to the Wotif Group's online channels seeking the value, convenience and simplicity offered online.

The Wotif Group achieved record sales in the year for its New Zealand accommodation partners, delivering a 22% increase in room nights sold.

FY2009 Highlights

Net Profit After Tax up 26% to $43.5 million

6.33 million room nights sold, up from 4.91 million last year

523,000 room nights sold for New Zealand accommodation partners (up 22% on last year)

More than 1,550 New Zealand accommodation suppliers partnering directly with the Wotif Group

Launch of 3 month booking window (previously 28 days) on Wotif.com

Wotif.com brand recognition in Australia at 50% and New Zealand awareness jumped to 30% (up from 25% last year)

14,500+ hotels and accommodation venues working directly with the Group in 49 countries

Flights booking platform enhanced for FY2010 re-launch

Successful integration and positive full-year contribution from travel.com.au Limited and Asia

Web Direct (HK) Limited acquisitions

11 cent final dividend (fully franked), taking full year payment to 17.5 cents (up from 15 cents last year)

Celebrate Oil Day!

While the politically correct grandstand insidious causes such as Earth Day, at Motella we like to give credit where credit is due and inject a bit of reality.

The accommodation and tourism industries run on oil. The economic viability of our business relies on the unrestricted delivery of this product and the freedoms of those that use its vital energy source for transportation.

Today we will celebrate the unrestrained joy of travel, to move between borders without impediment or environmental guilt, to sample and interact with different cultures and celebrate the achievements of humankind.

Today we will be celebrating the achievements of the petrochemical industry that has helped raise living standards to the levels we enjoy today.

This afternoon I will be spending some reflective spiritual time as I take the 1.5kms drive to the bank with the widows down listening to the burble of a V8 combustion engine.

Submitted by Ayn Rand Center

27 August 2008

WASHINGTON, D.C., August 26, 2009--Tomorrow, August 27, marks the 150th anniversary of the birth of the oil industry in the United States.

According to Alex Epstein, an analyst with the Ayn Rand Center, “Nearly every item in your life would either not exist or be far more expensive without oil; there is simply no comparable source of practical, portable energy.

“Yet today people increasingly label oil a pollutant that damages rather than enhances our lives and, even worse, an addiction--likening our consumption of oil to a junkie’s self-destructive heroin habit. This is profoundly ignorant, not to mention unfair to the petroleum industry that tirelessly innovates, year after year, to find more oil and extract it more efficiently.

“In previous generations, the birth of the oil industry was celebrated, and deservedly so. Oil has sustained and enhanced billions of lives for more than 150 years by providing superior, affordable, ultra-convenient energy--and is as vital today as ever.

“Today, though, we should be celebrating petroleum and the industry, past and present, that uses it to work miracles in our lives.”

Source: Click HERE

Motel Rates Demand

We appreciate hearing from fellow moteliers. We enjoy the increasing frequency of contact via Skype, email and phone.

Local councils seem to be a recurring theme at the moment.

One chap from the Far North that contacted us recently is not happy with a disproportionate rates burden falling on his lap and sent the following email to us:

"Here in Paihia in the far north our general rates have gone up between not much and more than 100% depending on who you talk to. The general rates have gone up 3.9% this year, but the main culprit is the dreaded toilet pan tax. This has gone up in the last year or two from $244.00 per pan per year to a whopping $430.00 per pan per year, which really is taking the piss (sorry...). I was just wondering what was happening re. rates rises/robbing councils in the rest of the country."

We should be outraged that local councils have managed to increase rates by more than twice the rate of inflation last year. The trouble is that we are not. We are too complacent and have allowed local authorities to blossom well beyond their original brief .

Let's face it, water reticulation, waste water, footpaths and roading are boring. It doesn't help that those that are attracted to serve on local councils are excruciatingly boring as well. Cardigan wearing ex-school teachers, career administrators and socialist do-gooders that end up on local councils have little understanding of running a business.

Most of us "producers" are too busy working in our own businesses and ignore what councils are up to - until we receive the rates bill!

Over the years, motels throughout the country have endured general rate increases and the introduction of pan tax, capital rating, tourism tax, road user tax, CBD retail tax....the list goes on. Motels have been disproportionately targeted, seemingly based on a perceived ability to pay rather than actual use of goods and services.

The motel industry have a vested interest in the efficiencies of local government and needs to have a voice.

What should the motel industry be saying?

An underlying message that should be communicated to all councils is that a strong private business sector will underpin and sustain the general welfare of communities. In order to achieve this, councils should focus on minimising rates and regulatory burden. Businesses are the wealth-creating institutions of society.

Councils should only fund genuine public goods and services and facilitate the efficient provision of necessary infrastructure.

Councils should exit from all non-core activities.

Councils should be making a concerted effort to reduce business/private household rate differentials. This would address the anomaly of accommodation businesses charged differing differentials and businesses subsidising private households. Rates should be based on actual use, not on the perceived ability to pay.

The case for councils subsidising events, tourism promotion, attractions, conference and sports facilities must be supported by rigorous economic analysis that clearly demonstrates net benefits for all ratepayers.

There should be a concerted effort by councils to move funding of ‘club’ goods, such as swimming pools, recreation centres, libraries, museums, zoos etc to user charges.

Hopefully the distraction of debating the issue of mandated Maori representation can now be put behind us and a debate on core council services and fairer rate distribution can commence. Local government minister Rodney Hide has stated that "councils need to to focus on core activities, cull any luxuries and cap rates at the rate of inflation – or less." We agree!

Our industry leaders should be at the forefront of working with Hide to ensure that he follows through with his rhetoric.

Has Roamfree run out of GAS?

Australian online tourism services business, Roamfree once claimed to have developed one of the world's most extensive global accommodation search engine. They widely repeated their lofty ambition to become the "Google of the travel industry."

It seems that instead Roamfree have become the latest casualty of hard economic times in the travel industry.

Kiwi Moteliers may remember the agreement that Roamfree made with AA Tourism in New Zealand in 2007 to distribute online accommodation inventory.

This was followed by Roamfree commission reps hitting the road and trying to sign up accommodation providers in a confused uncoordinated campaign.

Those Kiwi accommodation providers that supplied inventory on Roamfree's GAS - Global Accommodation Search via the AA or direct with Roamfree soon found that the benefits of the distribution model were somewhat overstated.

Hints of trouble started in Australia by the widely reported financial problems of major shareholder and former face of Roamfree, Tony Smith who was facing multimillion-dollar losses from the MFS share collapse and sour property deals.

There was also a much publicised spat from up to 50 sacked employees that were sacked after a company reshuffle in April last year.
Mainstream media reported of Roomfree's ex-employees that were using on-line feedback sites with claims that Roamfree.com were finding it tough to grow as fast as it had hoped in the internet travel industry and were missing sales targets.
I guess they were right.

www.goldcoast.com.au

By Shannon Willoughby

25 August 2009

ONLINE travel booking company Roamfree is the latest local company to be stung by high debt levels and a downturn in consumer spending.

The Surfers Paradise company moved into voluntary administration late yesterday after it failed to reach a debt-servicing agreement with its noteholders.

A decline in travel spending also fuelled the company's administration.

Ferrier Hodgson's Tim Michael and Will Colwell have been appointed to take control of the company.

The group's subsidiary trading companies, BookEasy Pty Ltd, Roamfree Pacific and majority-owned Tourism Technology, are not affected.

Roamfree was the brainchild of tourism entrepreneur Tony Smith who sold out after losing more than $50thmillion following the collapse of MFS.

Mark Frawley, the former general manager of Mr Smith's BreakFree company, was appointed the new boss.
Other directors include Terry O'Dwyer and Lee Warren.

The company said despite the appointment of the corporate doctors, its 25 employees' jobs remained safe.

"From my initial review of the company's affairs, it appears that funding provided by noteholders and investors has been exhausted by business investments and acquisitions and the costs of developing its online offering," said Mr Michael.

"The current economic climate, resulting in reduced travel and accommodation bookings, has also negatively affected the performance of the group.

"My initial focus will be to maximise the recoverable value of the company's investments in and loans to the group's subsidiary companies."

It is unknown what the company's debt is.

A creditors' meeting will be held Thursday September 3.

Source: Click HERE

Hotel offers room and tattoo package

In these hard recessionary times we live in, innovate ideas are needed to keep ahead of the pack.

We like The Hotel Erwin's promotion that has a definite point of difference!

24 August 2008
www.news.com.au

GUESTS at a US hotel can be left with a permanent reminder of their stay with the hotel's new room and tattoo package.

The Hotel Erwin in Venice Beach is offering guests a $119 voucher to get inked by the hotel's in-house tattoo and graffiti artist, Norm.

Costing $476, the "Ink and Stay" package includes a room, moisturising lotion, an icepack for healing and a bottle of tequila to numb the pain.

For those that can't decide what to have, the hotel is offering a $596 bonus to anyone who has "I Heart Hotel Erwin" etched into their skin.

Others can take ideas from Norm's artwork, which can be found all around the funky Los Angeles hotel.

Temporary tattoos will also be available for those looking for something less painful and permanent.

The offer runs until December 30, 2009.

Source: Click HERE

Wotif.com record-breaking sale

Two months after the "Wotif.com 5-Day Sale" wotif.com launched the "7-day Ridiculous Rates Sale" that that is ran from 17 - 23 August. The delivery of the campaigns were subtly different, however both only promoted accommodation providers that offered deals at least 50% off their rack rate.

How successful were the campaigns?

I have heard no mention of how the first campaign supported by newzealand.com went, however the second campaign that was supported by ads on major Australian radio stations appears to have feared much better. Wotif.com do not usually use paid mainstream media support their promotions, so it will be interesting to see if this investment gave an acceptable return and if it will be used again.

The latest campaign has clearly achieved short term success, with Wotif.com announcing that they have sold more rooms in one day during the campaign than ever before. We suspect that there would have only been a modest drop in the average tariff that would have impacted on the commission revenue, however this would have been balanced somewhat by their rise in the number of customer booking fee opportunities.

We wonder if the high level of heavily discounted rooms sold during the last 7-days will have a detrimental impact on the level of sales directly after the promotion period?

Wotif.com were not the only accommodation reseller knocking down rooms at basement prices recently with Best Western having their own sale from 13 August 2009.

The Best Western 3-day sale offered 40% off in the Asia-Pacific region with more than 70 participating properties.

It is worrying trend that groupings of accommodation providers are defaulting to sending tariff through the floor in order to stimulate short term demand.

Motivating travel is not easy, however there is still room for innovative marketing that appeals to the basic human emotion and desire of consumers for an experience outside their usual location. A great campaign taps into a range of emotions that will drive decisions of consumers.

It is concerning that travel has been dumbed down to the lowest common denominator by promoting a one dimensional bargain basement commodity.

22 August 2009
Press Release: Wotif.com

Wotif.com announces record-breaking global sale results despite financial crisis

Online accommodation provider Wotif.com has seen a record number of consumers taking advantage of their first ever global sale which launched on Monday.

The 7-Day Ridiculous Rates Global Sale, with over 1000 properties slashing rates by up to 70 per cent, has set a new benchmark for the most Wotif.com rooms sold in one day.

Megan Magill, General Manager Brand for Wotif.com said the brand has broken two records in two days with Wotif.com Call Centre and IT teams working around the clock to deal with the influx of bookings.

“It’s reassuring to see that despite the economic downturn, consumer confidence is on the rise with people rewarding themselves when great deals like this come along,” Ms Magill said.

“Some of the biggest hotels in the world are taking part in our sale so it’s a great opportunity for people to snap up a bargain all over the globe.”

Five star properties are offering huge savings with deals available from $105 for a five star hotel in Sydney including breakfast or wine and cheese platters.

The sale is due to finish on the 23rd August at midnight and offers huge discounts at selected hotels around the world.

Go to www.wotif.com to book before this Sunday.

Source: Click HERE

Social media is a fad ...

... or is it a fundamental shift in the way we communicate?



Source: www.twitter.com/TrendTracker