“Kalibri Labs report says Brands made a dent in OTA’s with there membership efforts”
CoHosts Robert Cole Holly Zoba Tim Peter
00:01 Apple news and why we are so loyal
00:21 Kalibri labs report for HSMAI on the value of the current brand loyalty program drive and its success and status why not a full 52 weeks?
01:05 Price product and quality are three key components to a purchase decision.
01:21 Hoppers new Hotel Pricing AI forecasting model the real issue is for Revenue Managers
01:35 The New Chrome rolls out matching the Safari roll out of blocking cross channel ad’s
01:50 Google’s new parallel tracking loads
02:08 show ends
Get visitors to your landing page faster with parallel tracking
ED — “They predict what a hotel price strategy will be. This will require a shift on the revenue manager to think carefully on how they approach discounting to top up”
STUART — “This kind of tool will split the industry in two. The folks who do a good job of yielding rates up and resisting the urge to dump rates at the last minute will benefit significantly from this. The lazy people are going to get majorly hurt by this kind of transparency. I’ve been using similar air travel predictors for a while and it’s extremely effective.”
BOOK DIRECT CAMPAIGNS: THE COSTS & BENEFITS OF LOYALTY
KEY TAKEAWAYS There were four primary takeaways from the study.
1. Consumer Behavior drove Channel Shift in Favor of Brand.com There was clear evidence of faster growth in Brand.com when compared to the OTA channel. This was true of both revenue and room nights when compared to the prior year before the direct booking campaigns were launched.
2. Net ADR of Brand.com Loyalty rates were higher than Net ADR of OTA rates When comparing average rates net of direct transaction costs such as channel fees, commissions and loyalty costs, the Brand.com rates that loyalty members booked were 8.6% higher than the net average rates of OTA transactions. As the rates are based on actual transactions, this takes into account all discounting related to the campaigns.
3. Results Reflected Net Positive Revenue Outcomes When actual 2016 results were compared to projected outcomes based on a statistical regression model, the results pointed to a net positive revenue outcome. While the model recognized potential rate trade down in 14-17% of Brand.com room nights, the median Net Revenue benefit for the sample was between +$9,000 to +$33,000 per hotel when taking into account all discounts, trade downs, loyalty and commissions costs for the subset of the business that was targeted by these campaigns (retail transient).
4. Loyalty is a Powerful Driver of Demand and Growth is Strong The 2016 loyalty contribution across the upper midscale, upscale and upper upscale segments ranged from 40-60% meaning that 4-6 out of every 10 room nights were driven by loyalty members. The growth in loyalty contribution in the Kalibri Labs database from 2015 to 2016 was consistent with the brand reports of 30-40% growth in membership over the previous year. Hotel chains reported record numbers of new members with similar recurrence patterns as their normal new member population.
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