Consumers were not always like Joe and Jim with so many options.
Back in the 1950s there was originally just group and leisure.
became a much larger mean of dynamic business within hotels.
business, leisure, group, and meeting.
These initial reasons for segmentation were for marketing purposes.
emerging faster than the hotel industry has been able to keep up.
initially were coming on line enabling consumers to purchase via this new media.
other modern channels have made segmentation even more complex.
will enable you to optimize pricing for the right customers at the right time.
stay brands as Nat explained in module one.
own the relationship directly with the consumer.
now there's a new class of travel brands called the booking brands.
wholesalers, or human travel agent to be able to get a specific rate.
it was much more difficult to have transparency.
is similar to how you used to go to Marriott directly and book a room.
With car service today there is no marketplace like with the hotels.
each other's prices, and rate, in the marketplace as a whole then dropped.
with drivers willing to barely profit if it means getting more customers.
in addition to new commission and cost structures.
operators to struggle managing these modern day distribution complexities.
A new class has made it's way into the hospitality industry as booking brands.
they have become the dominant point of entry for consumers.
organized in clear fashion for the consumers to make a selection.
Many consumers pass through these brands before they decide where to stay.
high market caps such as Google, Expedia and Priceline.
it's hard to compete with them, in terms of online marketing.
being the central point for information for all.
their dominance has only gone up over the years of the study.
consumers have been visiting hotelsbrand.com website less.
or both the OTA and the hotel website over to strictly visiting an OTA.
to help a hotel shift the current consumer trends in a more positive direction.
shifting back market share to the hotel or hotel company.
optimize the rate that you can charge and optimize your distribution strategy.
Cost of acquisition are the costs associated to acquire a customer.
based on a prenegotiated agreement that you have with them.
expenses to direct customers online to its website having customers book for an OTA.
Or the pay per click associated with using a management site.
have associated in highly varying cost to acquire customers.
at two times the rate of revenue growth.
at nearly 39% related to about 20% of total revenue increases during that time.
the most appropriate fashion to target the most profitable customers.