Are OTAs Starting To Own The Mobile Space?

Traditional sources of business for motels are changing rapidly.

In our Predictions For 2013, we earmarked the mobile channel as the most potential for growth:

"The mobile channel will continue to grow as a viable new source of business. Apps will continue to generate leads and moteliers will mostly rely on OTAs to be part of this space. The mobile web is where the growth will occur in 2013 and moteliers need to look at their own web investment to catch this wave."

The mobile channel is an important part of consumers' journey from inspiration to finally committing to an accommodation choice. This journey can involve a complex chain of different media from word-of-mouth, print, customer review sites to an array of bookable desktop websites etc. Mobile is increasingly being added to the chain of mediums that consumers regularly visit to research accommodation options.

For accommodation providers, having a professional presence across all mediums regularly visited by consumers is critical. Those accommodation providers that aren't serving up their own dedicated mobile option, can easily break the chain of a consumer's decision making journey.

From my own market observations, the impact of mobile channel is not immediately obvious, as the consumer tends to use other mediums to make the final booking. At the moment, the benefits of having a mobile presence is caught-up in the murky science of The Billboard Effect - ie the benefits that accommodation providers gain from marketing their property across many mediums that generates reservations through other channels, such as the accommodation provider's own desktop website, OTA, telephone, off-road etc.

As the majority of consumers are currently not using mobile websites or apps to book online, accommodation providers that faithfully record sources of business are only aware of the last medium the consumer visited before they committed to a decision. The influence of other mediums along the consumer decision making chain such as mobile are still hugely important, but harder to measure.

There appears to be an emerging game-changing trend where consumers are beginning to have the confidence to use their mobile devices to make an online reservation. As smartphones and tablets are now commonplace consumer items, the use of these devices as a one-stop research AND booking tool appears to be increasing.

As consumers become more comfortable getting instant gratification with a hand-held device, Online Travel Agencies (OTAs) are benefiting from their trusted brands and investment in intuitive mobile websites and apps to capture the change in consumer behavior.

Interestingly, the fortunes of the mobile channel for the most successful OTAs that operate in the New Zealand market have been mentioned in the media recently:

"More than 20% of all bookings made on leading travel website Wotif.com are now processed through mobile devices, an increase of more than 100% in 12 months.
Wotif.com has seen a steady surge in bookings across mobile platforms since launching a mobile site in 2009 and apps for iPhone and Android last year."

And

"Mobile devices are taking the online accommodation market by storm with a spectacular increase in the number of customers using mobile devices to book accommodations. Booking.com has seen its total transaction value of mobile hotel bookings rise from $1 billion in 2011 to over $3 billion in 2012."

While OTAs appear to be hitting the ground running, many individual accommodation providers may have been caught napping.

As the accommodation industry focuses on wrestling back consumers from OTAs by relying upon their desktop websites, professional mobile website development along with mobilised booking engines doesn't seem to be a high priority.

Is there a risk that the emerging mobile channel will soon be owned by OTAs?

Motel Name Suppression - Updated

I see that the Human Rights Commission is prosecuting the Sensible Sentencing Trust for allegedly breaching name suppression orders of a convicted paedophile.

There is an obvious irony that the government funded Human Rights Commission, a hand-wringing adjunct that seeks justice for members of the public with hurt feelings, is spending public money on defending the "rights" of an upset convicted paedophile.

While it seems murky if the courts granted permanent name suppression or not, it is interesting what details we can find while sitting in a darkened room, in front of a glowing computer screen.

While the Sensible Sentencing Trust is talking tough (see their media release below), they have appeared to have reacted to legal threats by removing all details of the published convicted paedophile on their website and have altered their original media release (see below).

While the Sensible Sentencing Trust and online mainstream media may have played ball by removing the name of the convicted paedophile, Google cached pages are still available if you know where to look....

Or you can simply buy this week's Truth newspaper where the convicted paedophile's name and the motel he is allegedly running in Taupo is published for all to see...

Sensible Sentencing Trust in David and Goliath fight for life 
6th April 2013

The Sensible Sentencing Trust is once again going into battle with a far bigger adversary – the Crown.

The taxpayer funded Office of Human Rights Proceedings is prosecuting the Trust for allegedly breaching name suppression orders of a convicted paedophile. 

(Name withheld) was convicted of numerous indecent assault charges against young girls and was listed on the Trusts sex offenders database.

Mr (Name withheld)'s lawyers wrote to the Trust stating their client had name suppression but could not produce any evidence; the case has ultimately ended up in the Office of Human Rights Proceedings who has also failed to produce any evidence of name suppression.

Sensible Sentencing Trust Spokesman, Garth McVicar said the case was shaping up to be a David and Goliath battle of "gigantic proportions".

"On one hand we have a fledgling voluntary organization fighting for the rights of victims and on the other we have the enormous resources of the Crown fighting to protect the so called 'rights' of a convicted paedophile."

"We have a minute from the Court saying There is no record of a final name suppression Order being made, yet the Office of Human Rights Proceedings is prepared to spend taxpayer dollars to fight us solely on the strength of Mr (Name withheld)’s claim he has one – yet all available evidence suggests he does not."

Mr McVicar said that the SST was once again having to go into battle for victims. "We did it in the Sue Couch case where the Crown spent hundreds of thousands of taxpayer dollars on Court and legal costs and ultimately made an out-of-Court settlement."

"The Crown is very good at defending the rights of criminals at the expense of law abiding citizens and seems to be prepared to spend vast sums of taxpayers’ money to do so."

"This battle is about the safety and protection of our children and the rights of citizens to know who is living in our communities free from the fear of some unnamed sexual predator or violent offender."

"Its no wonder New Zealand has a shocking level of child abuse when taxpayer money is being squandered defending the so called 'rights' of a convicted paedophile."

"We believe children deserve better – they are unable to defend themselves – and we are prepared to vigorously defend the right to access information about predators."

“Let the battle begin."

Regards,

Garth McVicar
National Spokesperson,
Sensible Sentencing Trust.

UPDATE 14/04/13

"The Sunday Star-Times is following Truth again, this time over the dirty pedophile running a Taupo motel that is described as “ the perfect choice for the whole family”.

We spoke to the pedophile earlier in the week so it is good to see Sunday Star-Times reporters buying Truth so they can follow up. We named the pedophile, we published his photo and we named his place of work.

Meanwhile the Sunday Star-Times does add a tiny bit more to the story, it appears he has lied to the Privacy Commission and the Human Rights Commission."

Source: Whaleoil

Frivolous Friday

I had a few relevant ideas to post about today....then I got bored and saw this:

Mr and Mr Smith Booking Into A Motel Near You

I've been keeping a casual eye on the imminent passing of the gay marriage bill.

I've got no problem with any contract or relationship that adults willingly enter into. All sectors of society should have the opportunity to endure a mother-in-law!

There's been several media reports about the tourism opportunities that NZ's gay marriage bill may open-up. According to a story in yesterday's Dom, "Same-sex Aussie couples eye NZ wedding vows".

Apparently 2,000 Aussie gay couples are fizzing at the bung to get hitched and with easy access to New Zealand there could soon be a flood of happy same-sex couples enjoying Kiwi hospitality. With $36,000 spent on the average Aussie wedding, this niche tourism market would appear to have great economic benefits.

The General characteristics of same-sex couples dictate that they are ideal target customers for the motel industry. Same-sex couples are more likely to be domiciled in urban centres, are younger than opposite sex partnerships, have fewer dependent children, are in employment and highly educated.

We say, bring it on!

Margaret Thatcher

Sadly, one of the world's greatest former leaders, Margaret Thatcher has died.

I can't help comparing the Iron Lady with a few of our stoic, long-serving woman in the motel industry that keep it all together and do-the-business with a resolute determination.

"If you want something said, ask a man; if you want something done, ask a woman."

 

Margaret Thatcher 

Born 1925 / Died 2013

Russel Norman To Enlighten Moteliers?

I was chatting to a fellow motelier earlier today that gave me reason to pause after his WTF revelation.

The Motel Association of NZ (MANZ) appear to be drip-feeding the announcement of speakers, building up to their 40th Conference and AGM to be held in Nelson later this year.

So who is the latest speaker that has been announced?

Who will front a small-but-perfectly-formed assembly of professional small-business owners at a time when the motel industry is searching for direction and inspiration?

Who is the person that will stand at a lectern in front of weary small-business owners offering encouragement, business-friendly advice and enlighten with innovative pathways forward?

Well, according to MANZ the answer is....Dr Russel Norman!

That's right, the prescribed male co-leader of The Greens, representing a political party of the naive and bewildered - Appealing to an eclectic mix of left-wing radicals that includes aging wanna-be hippies, dim-witted Generation Y youth and menopausal Remurea housewives.

The Geens are a narrow-minded, anti-business party, gift wrapped in green rhetoric. They promote statist policies that include common threads of either "banning it" or "taxing it". When they are completely stumped for ideas, they simply call for an enquiry.

Aussie export, Russel Norman is the man that has recently advocated solving New Zealand's economic woes with the mad-cap brainwave of printing billions of more money. While this would provide a temporary boon for Xerox, the hard-earned wealth of a vast number of Kiwis would be handed over to the state - But those noxious Watermelon Greens kinda like that!

At first glance it would appear that inviting the ilk of Russel Norman along to a business industry conference is a worthy of an ironic face-palm. Why would a trade association wish to legitimise the looney-extremes of the left?

While Russel Norman's conference gig may not serve to bolster MANZ's credibility as an association allegedly representing mainstream businesses, maybe this bizarre inclusion has been inspired to boost curious attendees?

What ever the reason, we're betting Russel Norman's conference presentation will be hilarious and prove to be a major conference highlight!

The Future Of Guide Books?

One of the benefits of operating a travel related business, isolated from the rest of the world is that we can glimpse into the future by observing trends occurring within more "advanced" overseas markets.

So what can we learn from Google's announcement this month that they are selling-up Frommer's? Frommer's is known worldwide for printing the iconic Frommer's Guidebooks.

Google  purchased the Frommer's brand last year and promptly ceased production and publication of printed guidebooks bearing the Frommer's name in favour of associating the brand with online assets.

Iconic, 83 year-old stalwart, Arthur Frommer, that first published Frommer's guide 57 years ago has recently purchased the brand back from Google and intends to resume publishing Frommer's travel guides in print and ebook along with operating the travel site Frommers.com."

Only time will tell if Frommer was right to wrestle the company back and in particular if there will be a sustainable consumer demand for the soon to be reintroduced Frommer's paper-based guides?

Following the theme of "rearranging deck chairs on the Titanic", last month another well-known travel guide brand changed hands. BBC Worldwide cut-loose Lonely Planet by selling it to a Nashville-based digital media company for less than half what it paid for the company in 2007.

While most considered opinion would suggest that the future of paper-based travel guides are on shaky ground, history gives us many examples of sure-fire predictions in travel that turn out to be wrong.

Dive Into The Starlite Motel

"What hides behind the faded glamour of motel neon?
Anger, heartache, guilt, despair, anticipation, desire, hope, joy..."

The no-tell motel has many untold stories from those that stand in front and behind the motel reception counter....The stories are worthy of preserving and with some motels the classic roadside signs are also worth saving.

One aspect of American culture that we like is the sentimental fondness of retro-business pop-culture, that includes motels .

Interesting that the classic motel, Starlite Motel in Mesa Arizona has had its 1950's "Diving Lady" neon sign resurrected after a restoration project by the local preservation foundation.

The motel and the sign have a great history - read more about it HERE.

Although the roadside sign has been spruced-up, it looks like that's where the romance of a bygone era abruptly stops. The motel's glory days appear to be well behind it.

Hovering over the motel in Google Earth, it looks like the swimming pool has long been filled-in and the sole review on TripAdvisor is less than complimentary.

Judging by the motel management featured in the following video, it looks like the motel is now part of the current-day 'Patel-Motel' phenomenon that are keeping the dreams of faded-motels alive in America.

 

Fat Fares By Samoa Air

Don't you love the indignant howling from self-important academics and outraged social groups that are apologists for "victimised" flabby folk.

With the exception of a very small minority with rare medical conditions and pumped-up athletes, people are considered obese simply because of a self-imposed habit of consuming more energy than they use. It's not the fault of the food industry, government or society. The hand that selects and scoops up copious amounts of food while laying on the couch belongs to the person that is individually responsible for their own ballooning body shape...

So should an oversized traveller pay more than others on an airline? Absolutely! Basic physics dictates that in order for a plane to get off the ground, a major consideration is the weight onboard, not the number of passengers.

If you send off a courier package to another destination, doesn't make sense that you'll be charged according the weight and bulk of the item? So does it make sense to charge airline passengers per-kilo as well?

No doubt other airlines will be watching Samoa Air's newly imposed per-kilo fare system with interest. 

Good on the airline for trying out a world-first fare system as a business solution to manage the weight of its "cargo". Predictably, the new fare regime has been widely reported in the media as targeting and discriminating against poor, blameless fatties. Samoa Air have responded with a smokescreen of social responsibility by claiming that they are trying to promote healthy living. Hilarious!

So will other airlines follow? Probably not - In the travel industry that depends upon online sales, it's easier and less threatening to treat all passengers as a one-size-fits-all commodity.

It's likely that airlines will continue to assume an average weight for its passengers and police weight with overzealous baggage fees;-)

Government To Open New Motel Chain

As an exclusive announcement we can reveal that Tourism Minister John Key will this week announce a cross-party initiative to form a new state owned entity:  

Tourist Motel Corporation of New Zealand

The announcement will herald a brave new era of "hands-on-government" in the tourism industry that will hark back to the good old days of the 50's when publicly owned assets and control were at the forefront of New Zealand's burgeoning tourism industry.  

According to John Key: "We've already got skin in a fleet of planes, i-Sites, a star rating agency and tourism marketing, so it was an easy decision for us to add a chain of motels to the set"

An extensive network of government owned motels will be built and operated to strict minimum standards ensuring that all visitors can enjoy accommodation regardless of  age, disability, race, marital status, sexual orientation, religious beliefs or employment status. 

The principles of the Treaty of Waitangi will be embedded into day-to-day motel operations and regional co-ops will elect motel management to ensure the motelier behind the reception desk reflects the unique cultural diversity of Aotearoa.

The new motels will be compulsorily Qualmark star-rated and Tourism NZ will flex its marketing strength by awarding a priority-listing to the government-owned motel chain on their website, newzealand.com.

Further marketing initiatives will include making full use of the government's stake in the i-Site network by using this channel to distribute brightly coloured brochures (on recyclable paper) for each motel.

Old-school protectionism will also make a welcome return to the tourism industry. It's been decided that the new motel chain will only list room inventory on approved New Zealand domiciled Online Travel Agency websites. Those nasty foreign-owned OTAs will be avoided at all cost.

The chain of motels will also opt-out of TripAdvisor and legislation will soon be passed that will ban all guest feedback on this forum. It is believed that government ownership and strict controls will eliminate the distraction of monitoring the opinion of guests that will be staying at the vast government-owned motel network.