“Google gets into real dynamic packaging in the EU, Fuel celebrates their 50th, RevPar is ‘as good as it’s going to get'”
Our animated recap
Our Show Player
Edward St Onge
Stuart Butler and the Fuel Travel Team
:02 Article discussion Spring Travel trends
:06 Robert and Ed join
:08 Article discussion about Googles dynamic packages in EU
:30 Article discussion on the new booking platforms in the airline space
:32 PMS options discussion for Hoteliers
:34 Loren leaves the show
:45 Article discussion about the Orlando hotel group not getting financial coverage for the data breach
:46 Article discussion regarding Expedia getting sued for data share.
:52 Article discussion on the F&B mass brand shift
1:02 Holly Joins the show
1:06 Stuart and the Fuel Team joins the show
1:08 Article discussion about OTA’s being a ‘steal of a deal’
1:18 Is TripAdvisor a hotel’s worst enemy?
1:40 Stuart and Fuel Team leaves
1:42 AirBnB threat discussion.
1:44 Occ plateaued Jan ’16 all RevPar gains have been ADR based — Robert
1:45 Hotel Game Robert reads the brand slogan and the hosts guess what brand it is
1:56 discussion about Hiltons new customer lead position
2:02 Holly discusses her project about an independent Hotel Marketing guide
2:07 Holly leaves the show
2:08 Show ends
What spring trends do hoteliers need to know to maximize their bookings and margins?
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And another one (From Lloyd Walmsley at Deutsche Bank:
Online Travel – Blue Skies Ahead for OTAs in Europe
07 April 2017
EU online penetration remains low and regulatory risks appear to be receding
We see the ECN rate parity report and survey of 16,000 hotels as bullish for OTAs in Europe. Specifically, OTAs can gain share from offline bookings (still 45% of bookings for independent hotels), and European regulators appear reluctant to further interfere with rate parity regulation in Europe. The report is particularly bullish for Priceline given its Europe footprint and market share.
Risks around Rate Parity regulation receding
Earlier today, the European Competition Network (ECN) released a report suggesting narrow rate parity has increased competition, causing a slight increase in room price differentiation across OTAs. While regulators promised to “re-assess the competitive situation in due course,” further regulation appears unlikely. In a Sept 2015 note, “Rate Parity in Flux,” we argued that narrow parity should not meaningfully impact OTAs, absent more onerous laws (e.g France’s Macron law). While a survey of 16k hotels in ten European countries show rate parity had a statistically significant impact on the overall hotel market and chain hotels, the changes did not have a significant impact on independent hotels – the bulk of the European market. Interestingly, 47% of survey participants were not even aware of changes to rate parity clauses. Results from France and Germany indicate more restricted laws had a larger impact.
Survey points to strong OTA incremental share with plenty of room left
In 1H16, 45% of total European hotel bookings were done offline vs 52% in Germany and France. During the same period, OTAs accounted for 41% and 36% of total bookings, respectively. As offline booking have come down from 54% of total European bookings in 2013, 8 out of the 9 points of market share that have come online have gone to OTAs vs direct. Furthermore, this shift as a percent of bookings moving online is relatively even across both chains and independent hotels. We see this consistent mix of bookings coming online as a strong bullish indicator for OTAs in Europe for years to come.
More restricted rate parity laws in France have had some impact
Survey results show 79% of hotels have not price differentiated across OTAs and 69% have not changed room availability, though in Germany and France 59% have offered lower rates on brand.com (vs 40% in broader EU). In addition, 44% in Germany and France indicated that they were not offering rooms to OTAs that were on their website vs 30% in broader Europe. We think the issue is largely behind OTAs in Europe.
Why OTA commissions are actually a steal of a deal