In the News
Essential Information for Hoteliers
- Reservations Via Google Search
- Influencing Leisure Travel Planning
- OTAs Get Fewer Hotel Rooms
NEW — Book “Live” Reservations via Google Search
…cut Expedia Commissions

LuxuryRes now connects to your Google search results. This connection allows guests to see your rates and to book a reservation directly on your Google Places Page without going to your website. This also helps you to point potential guests to the low cost LuxuryRes Booking Engine instead of a high-commission Online Travel Agent. You can cut your distribution cost by more than 60%.

How it works – How to outsmart your competitors

You already have a Google Places page. You or someone on your staff probably created it several years ago. Google provides this page to you for free, and then turns around and sells advertising to your competitors and Online Travel Agents (like Expedia). Google puts those ads on your Places Page in 2 locations. The result is that many potential guests start by searching for your hotel and go to your Places Page. When they get there, they see ads from these competitors and often book a competitor instead of you. LuxuryRes helps you protect yourself from these competitors.

Increase Reservations, Cut Commissions

LuxuryRes helps you redirect reservations from expensive online travel agents to your own booking engine. LuxuryRes provides Google with rate information via a connection to the LuxuryRes Control Center. Now, when a person goes to your Google Places Page, Google will display your rate info via the BOOK Button on that page. You will notice that Google already sells ads for the Book Button to Expedia, Travelocity, etc. so they can book reservations via your Places Page.

 

Your website is listed in the Book Button dropdown, but no price displays. LuxuryRes will connect to the Book Button and will display your pricing info to compete with Expedia, etc. This makes it easy for guests select your pricing info and book directly on the Place Page. Reservations are delivered to you via LuxuryRes’ normal reservation notifications.

More Bookings, No Extra Work for you

This cuts several steps from the booking process so your guests are very happy.
You save a lot of money, so your owner happy too. All of the inventory displayed on
Google is derived from the Control Center. This means that there is no extra work for
you or your staff. Everyone is happy.

Call your LuxuryRes rep today for additional information.

How Do Travellers Choose a Vacation Destination
What can you do to influence their decision?

Consumers today are autonomous – both by choice and necessity. They have become more insular with a closely-knit sphere of influence, and this is affecting how they both arrive at and make purchase decisions. Family and friends are essentially tied with traditional media as the places they find ideas and inspiration for making travel plans. Family and friends “win” as a trusted source for insights and advice. Then the Internet dominates as consumers move closer to making an actual purchase decision.

 

The key sources of information for each phase in the travel decision-making “funnel” include:

 

THE TRAVEL SERVICE DECISION FUNNEL

 

  • Ideas and inspiration: The North American traveler casts a wide net when seeking ideas and inspiration for travel-related decisions, looking to family, friends, television, and a variety of printed media including magazines, guide books and brochures.
  •  
  • Advice and insight: The range of sources narrows. The personal recommendations of family and friends still top the list, and the Internet grows in influence. The impact of brochures and television drops, revealing their role primarily as awareness-building, not advice-providing.
  •  
  • Pricing and comparing: The Internet moves to the forefront, as travelers explore a variety of online resources. Online travel agencies such as Expedia or Travelocity are utilized by more than half of travelers for gathering pricing information (56 percent) and impartial comparisons (51 percent). Travel service suppliers’ websites (such as airline or hotel pages) are also sources for pricing (51 percent), but less so for comparisons (35 percent). Roughly one-third turn to online search engines (37 percent) or multi-brand online platforms like Amazon and Hotels.com (35 percent) and destination websites (34 percent) for pricing. However, only one out of four travelers uses destination websites for comparison shopping.
  •  
  • Purchasing: When it comes to purchasing the best deal, the funnel narrows to two main options – booking through an online travel agency (41 percent) or directly via a travel supplier’s own web site (38 percent). Less than one in four travelers uses traditional travel agents (23 percent) when booking, followed distantly by multi-brand websites (18 percent) and destination websites (17 percent).
Sources of Information Used For Travel Service Purchase Decisions (Top 5 per Category)

 

Ideas and
Inspiration
Insights and
Advice
Pricing Comparing Purchasing
Relationships & Media Trusted Sources Multiple Sources Impartial Aggregation Best Deal
Family/friends (52%) Family/friends
(54%)
Online Travel Agency (1)
(56%)
Online Travel Agency
(1) (51%)
Online Travel Agency(1) (41%)
Magazines
(49%)
Travel guide
books
(44%)
Travel service suppliers’ own websites (2) (51%) Internet search websites(3) (38%) Travel service suppliers’ own websites (2) (38%)
Television (48%) Internet search websites (3) (38%) nternet search websites (3)
(37%)
Travel service suppliers’ own websites (2) (35%) Traditional travel agents (23%)
Travel guide books (46%) Travel experts (38%) Multi-brand
website (4) (35%)
Multi-brand website (4) (32%) Multi-brand website (4) (18%)
Travel brochures/ Direct Mail (43%) Destinations’ websites (37%) Destinations’ websites (34%) Destinations’ websites (25%) Destinations’ websites
(17%)

 

Hotels Handing Fewer Rooms to Online Travel Agencies
Hotels handing fewer rooms to online travel agencies

The Washington Post   |  By Danielle Douglas, Published May 8, 2011

 

With more guests checking in, hotel companies are handing online travel agencies fewer rooms to sell, making it more difficult to find discounts. Hotel chains supplied travel Websites with just 9.1 percent of their inventory last quarter. That is down a little less than 1 percent year over year, but a marked difference from the14 percent [supplied] in 2009.

 

The online travel sites “are the only [distribution] channel that saw a decline in the volume of business they get from hotels,” said Tim Hart, executive vice president and head of business intelligence for Rubicon.

 

The decline comes at a time when hotel operators are raising average daily rates. Smith Travel Research said rates crept up an average of 3.1 percent to $99.37 last quarter. Locally, average daily rates trended up 2.7 percent to $145.45. Even at a discount, the price of hotel rooms on travel sites climbed 4 percent in the first three months compared to a year earlier.

 

For business travelers, who typically book through traditional agents, Expedia and Priceline’s inventory is of little consequence. For the average consumer, however, the discounts offered by these sites could mean more.

 

Hotel operators have long had an uneasy relationship with online travel companies. In the dark days of the downturn, many upped their use of these agents, forking over an average 25 percent in commission, in a desperate bid to fill rooms. Now that business is rebounding, operators are debating the value of those relationships.

 

“Different channels serve different needs and market conditions,” said Larraine Voll Morris, vice president of electronic distribution at Bethesda-based Marriott, in an e-mail. “We continue to leverage [online travel sites] in very strategic ways to optimize and not to maximize sales.”

 

Sales at Marriott, which operates 3,600 hotels in 71 countries, grew 5.6 percent to $2.7 billion in the first quarter, though the numbers fell short of analysts’ expectations. The company selectively began raising rates last year, before any meaningful pickup in travel, a gamble that paid off as rooms began to fill in the summer…

 

GOING SOCIAL
TravelHorizons
Are you on Facebook? Have you tweeted yet?

Both questions now find their way into much social discourse because of the

explosive growth in the use of “social media,” driven by what appears to be an

almost insatiable desire to “stay connected.” But how have these new forms of

staying connected influenced consumer choice when it comes to evaluating and

purchasing travel services? The results may surprise you.

 

As revealed in the most recent travelhorizonsTM survey, almost 6 out of 10 (59%)

of active travelers have visited a social networking site. Their most popular activities

on these sites include uploading photos/videos (49%) and rating products or services

(46%). Roughly one-quarter have visited a chat room and/or posted content to a blog.

Nearly half (46%) check their sites at least once a day.

 

Facebook enjoys the highest incidence of visitation (almost half of active travelers

have visited, and fully one-third have posted a personal page), while roughly

one-quarter of active travelers have visited MySpace. Both percentages are up

significantly from just one year ago. And when it comes to searching social sites

for content, the incidence of visiting YouTube eclipses that of TripAdvisor by a

wide margin.

 

But, to what extent does the content found on these sites influence consumer

choice when it comes to the evaluation and selection of travel service suppliers?

Right now, not much, because site visitation for travel planning purposes remains

quite low. By way of illustration, only 1 in 10 facebook users seeks advice about

either destinations or travel service suppliers, and just 1 in 20 has joined a

community of users who share common travel interests:

 

%
Travel Applications on facebook
11
Ask advice about a destination
8
Ask advice about a supplier
6
Learn about travel deals
5
Get updates on destinations and suppliers
5
Join a community with like travel interests
Source: Ypartnership / US Travel travelhorizons™, n=1,610.

That’s today, however. How quickly this may change is a matter of considerable

speculation given the remarkable rate of penetration these sites have achieved in

such a short period of time. Yet, for now, consumers continue to seek and respond

to information about travel services and suppliers from more established offline

and online media sources.

Entrepreneurs Mixed on Social Media
The Wall Street Journal  |  March 16, 2010

Services like Facebook and Twitter have become a popular marketing

tool for small firms, but new evidence suggests social media may not

be as effective as hoped

Last year, Jackie Siddall described in a blog post how a message she received on Twitter prompted her to buy a folding kayak for around $1,900. The vessel was one of about just 600 sold in 2009 by Folbot Inc., a small retailer in Charleston, S.C. "You can't buy that exposure," says the firm's co-owner, David AvRutick, who claims the incident speaks to the value of using social media for marketing.

 

But Mr. AvRutick's experience may be the exception, rather than the norm. In its short lifetime, social media—services like Facebook and Twitter—have become popular marketing tools for small firms due to the low cost and easy-to-use format. Some entrepreneurs say they're highly effective, but new evidence suggests otherwise.
"The hype right now exceeds the reality," says Larry Chiagouris, professor of marketing at Pace University's Lubin School of Business.

 

Last year, social-media adoption by businesses with fewer than 100 employees doubled to 24% from 12%, says a survey released in January of 2,000 U.S. entrepreneurs from the University of Maryland's Smith School of Business and Network Solutions LLC, a Web-services provider in Herndon, Va.

 

Meanwhile, a separate survey of 500 U.S. small-business owners from the same sponsors found that just 22% made a profit last year from promoting their firms on social media, while 53% said they broke even. What's more, 19% said they actually lost money due to their social-media initiatives.
"It could harm you if you end up inadvertently saying something stupid, offensive or even grammatically incorrect," says Mr. Chiagouris.

 

A business owner's time and energy spent on social-media marketing—Folbot's Mr. AvRutick says he dedicates about an hour a day—could also go to waste. Fifty percent of the latter survey's respondents say it requires more effort than expected.

 

To gain positive results, entrepreneurs need to regularly interact with consumers through these sites and not simply create static profiles, says Jacob Morgan, co-owner of Chess Media Group Corp., a consulting firm in San Francisco that specializes in social media. Some small businesses opt to hire outside firms to handle their social-media marketing or advise them on the best ways to use it, but such services can cost hundreds of dollars a month.

 

For Chris Lindland, owner of Cordarounds.com, an online clothing retailer in San Francisco, converting consumers into customers using social media has required a "patient investment."  "My business has been visited millions of times, but I haven't made millions of sales," says Mr. Lindland, whose four-person staff spends up to 90 minutes a day managing Cordarounds's accounts on Twitter and Facebook. "People have told me they finally got around to buying from my business after reading about it on social media two years ago."

 

Some entrepreneurs say they've found early indicators that their social-media efforts are paying off.  "The people coming from social media have been buying," says Stephen Bailey, who oversees social-media and other marketing initiatives for John Fluevog Boots & Shoes Ltd., a footwear and accessories retailer in Vancouver with about 100 employees.

 

As evidence, Mr. Bailey points to a 40% increase in online sales in 2009—the first full year the company engaged consistently in social-media marketing—compared with 2008 when it was just getting started. He says he can draw a correlation between those figures and social media by looking at traffic to the company's Web site from Twitter using Hootsuite, a free Twitter-management service from Invoke Media Inc. Other free services that track Web traffic from social-media sites include Google Analytics, CoTweet and Lodgy.

 

"The second we started using social media, it became one of the biggest drivers of traffic outside of search engines," says Mr. Bailey, adding that his research shows these visitors spend as much time on Fluevog.com as those who come from other online destinations. The company doesn't invest in paid advertising on social media,

he adds.

 

Other business owners are soliciting customer feedback and monitoring what's being said about their firms to determine the impact of sites like Facebook and Twitter on consumers' buying decisions.

 

Mr. AvRutick says he regularly searches Twitter for tweets that mention kayaking and then sends messages to the people who wrote them. He connected with Ms. Siddall, the blogger who credited Twitter for exposing her to Folbot, after she posted a tweet that mentioned she wanted a kayak.


Ms. Siddall, a 37-year-old senior designer for Idea Couture Inc., a creative-marketing agency in Toronto, says she was unaware that folding kayaks even existed until she heard from Mr. AvRutick. She spent the next few months researching different brands, which included perusing a networking forum on Folbot's Web site about kayaking.

 

Ms. Siddall says she later asked Mr. AvRutick via Twitter if he would send her some photos of her folding kayak being made, and he provided about 20. After it arrived, she says she decided to write a blog post about the whole experience. "I didn't find the same level of information or communication online from the other brands," she says

 

Needleman, Sarah E. 2010.

Wall Street Journal, March 16, Section B

Online Travel Agencies Seek Unfair Advantage
Lodging Hospitality - Online Edition  |  Mar 15, 2010  |  By Ed Watkins

 

The swine who run online travel agencies are once again trying to screw the hotel industry.

 

Under the innocuous title of The Internet Travel Tax Fairness Act, the OTAs are quietly attempting to slip a bill through Congress that would transfer a portion of their tax liability to the nation’s hoteliers.

 

“It’s completely outrageous,” says Marlene Colucci, executive vice president, public policy, for the American Hotel & Lodging Association. “If you look at the fine print of this bill, it’s providing tax relief for online travel agencies at the expense of hoteliers.”


The proposed legislation boldly calls for a federally mandated exemption for OTAs on the taxes they should pay to local jurisdictions on the spread between wholesale hotel room prices (what they pay to the hotels) and the retail prices paid by consumers. Should this legislation become law, local tax officials would undoubtedly turn to hotels to make up the shortfall in tax revenues. (Another, even more egregious version of the bill would exempt OTAs from paying any state and local room taxes.) And to add insult to injury, Colucci says another provision of the legislation would prevent hotel companies from setting up their own online travel agencies in order to gain the same tax advantages the OTAs would have.

 

If the situation is a little fuzzy for you, here is an example of how the system currently works: A hotel wholesales a guestroom to an OTA for $160 a night. The OTA sells it to a consumer for $220, $200 for the room and $20 for a 10-percent local occupancy tax. But instead of remitting $20 to the local taxing organization, the OTA only pays $16, basing the tax on the wholesale price of the room. The proposed legislation would prevent taxing jurisdictions from attempting to collect the extra $4 from the OTA. In that case, all know cash-strapped cities, counties and states will go after the hotels for the difference.

 

“This is not an issue for Congress, but one for states and localities to decide,”

says Colucci. “It’s a question of tax fairness: Your tax liability shouldn’t suddenly

become mine.”

 

The hotel lobby headed by Colucci is working feverishly to shine light on this issue, which the OTA lobbyists hope gets tacked onto some other bill and passes before legislators understand the issues involved. If the proposal can’t be squelched immediately, Colucci at least wants Congressional hearings on the bill.


In the meantime, she and other industry advocates are asking hoteliers to buttonhole members of Congress to voice their opinions on the issue. A phone call or personal visit is best, but if that’s not possible a letter will do. The AH&LA crafted a sample letter members of the hotel industry can use to communicate their views.


Please take action today.

Or go to American Hotel Lodging Association Website for additional information.

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