Topics>>Panel Discussion: The Key to Omni-Channel Distribution

Panel Discussion: The Key to Omni-Channel Distribution

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Mon, 24 Oct 2016|

Chadi Farhat, Chief Revenue Officer, Morgans Hotel Group Kathleen Cullen, SVP Revenue, Commune Hotels Dan Wacksman, SVP Global Distribution, Outrigger Hotels James Gancos, CEO & Founder, The Guestbook Utpal Kaul, Head of Global Tech, BookingPal

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Automatically Generated Transcript (may not be 100% accurate)

That dirt and some great observations found that aren't just a plethora of different brands appier. And man I'd like to have each first introduce themselves and say what they do. Am in terms of revenue management distribution. And they'll get rate chilcot. So. Yes hi Liane ershad Fahad. Interim C a and and chief revenue officer for. Morgan topical. Sean under the under this young rolandic. I'm in charge of revenue management uses. Cameras and digital marketing who. Hi Kathleen Cullinan and senior vice president of revenue and distribution. For our add to grow its hospitality. To roads is certain newly formed company and result of the merger between destination and community. Hotels resorts. A lot of general accessing dopamine green IM based general why you know for we're a dozen results. As a senior vice president for marketing and distribution. Well we have forty hotels under management well we started off as a family company Arby's that I'll always most of our portfolio there about recently we've been pushing out into. Our major Indian Ocean Pacific with properties to properties in Thailand to properties and three G. Mauritius on mark the use. Another terrible destinations like. Hello my name's James K cos I'm CU and kind of the guest book. We are a direct booking rewards platform for independent boutique hotels. We have about 500 hotels were further hotels and fifty countries. Enter prize defining the guest book hours of overtime operations for ten years with. The former star weighed down polls have a tie at. Pay. Men in the thoughtful column when booking bell. We have. Going to connect video platform involvement of larger gain vacation rental space. Backed by Amadeus to GDS. In my previous life phase two B web. Expedia followed by more wind ten to big dear Dan medics and hospitality space. Railway my role there is as head of global technology partnerships. Grade. So this is the rate grew to F these questions. Toddler now I know that there'll be a ton of questions of the money and so will T leapt straight away but I do want to open up kind go with that question final question I had. Foreign last speak periods which is the question I have knowing where their. Add to it to optimise revenue management particularly with fully loaded mean it. You know we are seeing the are throwing the start clicking around and poorest of the others for going to wrap for a multitude of reasons and Christians certainly told us higher figure. Why that's valuable. And the bear but at a mark. Added a very interesting. Prospector one out which is here now in the you know line in my. It's that we. Do we play and don't know that much. The OT is really provided Eric. Value to our overall revenue management because it would be too costly for us to police now figuring out ourselves are so we plan that it was an interesting kind of perspective. To get your take and it declares. We signal while for reports coming out now gaming industry about how much it actually costs to be fully loaded. We don't have the budgets of the OT is known of B. Groups do M particularly as you get down to some liberty properties. Gets more and more challenging so how do you play in this field and and still managed to. On the revenue side revenue side make the argument. Of being at a more cost effective channel with Barack but in. When there's a those costs including overheard an expertise in hiring in everything else that involved. And I do sit there I would say that you have to. Add a good chunk at least of US CM Alessio spent into doubt because that's pushing up traffic for conversion sell. Anybody can jump in the gap wine are under plus. Guess our April 1 term. To assemble F. And Edith. Accessible at all why customers version one point here is the part of acquisition. And how it say it's now that I diminishing or just gone up now and the second foreigners had drawn return on that ride. So there and in that control of the barrel here knows better than I do. Customer acquisition and this pace anything that's where the frequency of priorities as infrequent. It it goes up when the frequency of purchase. Increases the cost or downright. So travel as one of those infrequent directors as with the cost of acquisition essentially. As a Dimon played just just one drive and double the food chain that Google rate. Until everyone in mind tripled for an the other is by traffic from Google. So you can compete and dollar for dollar with the likes of Expedia and booking dot com right. The poorest Arab amp. Cost effective ways to do their bad day it suicide scalable. The second or the question is then how you Amadeus was cast. In the case for the firm thought he is expedient booking dot com. Trip advisor or. Big Ken amor de as a cast what what they call the lifetime value of the stand tall once they get you to book a hotel room for example. They can sell you. Travel insurance they can send you an airplane ticket digging email marketing rights to the cost diminishes what the hotels could do there's. Users same methodology once you get up hope in for the customer had you retain the customer saw the cost of acquisition fits came up a couple of days ago and scared to. There's some research done by Cornell I believe. With this said the cost of acquisitions by Dexter cost redemption. So the question key question brought. Bottom then in in the hotel space says. How do you retain the customer and how happy to engage the customer in repeat purchasers. Dollar for dollar and it now as far as I know you can match the war chest of these LP is. Just I'm actually packed room. Did the question of the slightly different way. Our week we have mentioned loyalty on the door beat Gelbard lord you then talk about possible acquisition which is which has importer. It's this desirable than that we keep talking about Mandalay and broadly it almost fell and the travel daughter gets. We're. We are common advising our business and talking about. The really doesn't make X guest Gloria. Yes he'd done my Europe started at about my view on this is. We at least you don't formation of the guest the quality guest has been checking in indoor or perhaps. Over the years Shaun White start that from Darren all of these guest lawyer then. Why do we need to go away then commodity guys our business and it and let's do it but there is no need to keep focusing on the priced piece which again for the day. It's probably. We've just saw public information and end earnings call of Marriott and an headlong where does that necessarily. Working. Again this is based on an irony corn release and analyst keep asking the question. Storm. There are other ways to create loyalty then just a memory that you adding to a coastal. Booming business and creating. Loyalty. The second point I wanna talk about is. Yes we don't have the budgets of or Jews but it's called black more against Sean idealist be. Which 25 pounds. We might have the budget of the Marriott and hoodlums and we're not trying to get the budget of the mode of the third and there are ways to create. Total to get business online looked at a business online without. Without having vintage props for example there's so intelligent partnerships with the Ortiz you can look at international markets where. At the end of the day I can spend MySQL actually mining a the world so let's focus on shorter lead gen and just spend money in these regions and her daughter is go landed on my keywords and Scandinavia health care at that point agenda that business. And that is even dorm. Potentially at a high cost business but it's an incremental business that again in the future. I business yet so we're dollar cost it's also important to understand the concept of incremental eighty and then the royalty pieces is critical. That's my my who. So I'd like to add to what you're saying am. Cause they totally agree you know there's been nothing staffing hoteliers from engaging directly with the customer and capturing their information. To get under Bob directly once our hotel that's totally where we should be going. NN providing that superior guest experiences really are about the guest experience no matter if their inner hotel. If there Al about what they're saying at a hotel make sure of that you are engaging with the customer. From prix booking are the way the post a gain an anywhere between because if you can do that the net gonna remember you would if you have that relationship. Then it's much easier to get them did not directly with teal. That being said and the cost of acquisition p.s I think it's really important and dirty hands. But the true cost of acquisition has for our view different channels. To be able to as as as there as a team revenue generating team to take a look out. What that cost debts to your play week. We don't have the money to roads hospitality doesn't have the money somewhere to wait you said. Our of those of Expedia booking out how many gonna Marietta Ohio yet exact track so. Am it's important for us to really under steel and wire true cost of acquisition is mightier not. And be able to zoom men and where our opportunities are sold. We're getting a lot of business through the various channels but why is our most profitable each year not. And what can we do to drive more business grew that she not. So is now about just shutting down one GM more no longer doing business it's really about in vats dean. Your resource as can be human resource is your finally ensure resource has. Into that's as a victim not. The one fingernail like it did was Kristen who said stick it out Dell Dong. Don't move away from where that strategy as everybody has to be on the same page. Arm NN work towards that saw might take some time and have to investor net. By all over time it will definitely become a winning strategy Diaz. It was the rate strategy should be given where we cannot just continue adding costs and tougher pass on top class. If dip hit warier Europe are likely away. The most. And stick with that strategy. Actually to end. Yeah no you optimistic about Betty can jump in with this is well. What organisationally and we want to things like Preston said which we must work with me as well as you know. So that bar primarily could be well over. Which will sell more and the question I've always had is core rate C concert at bear and through a wian. Had a different ways of doing three on PMS. Anything else curious are much opportunity. For a high margin outsell that nobody has commission anyone I'm. And yeah Tibet strategically as a major focus of brevity manages and my question is it because a good position to silo. What is up one chief commercial officer kind of looking not. What's the deal with that so. Eight. Arraf from the Fed but one step jumpy and that's fine. I think it's a couple different reasons I think. You know we. As revenue ex birds. Are out there are. We have continued just just have things added on to a plate that we still one person M a RR department of wine meat eating when some gazans. So we have so many more responsibilities that yeah we're still using the same resource has. And we expect too much more so there is huge amounts of opportunity in other areas outside of what the original focus of the position has them. But yeah we're nine investing in that so I think that's a huge opportunity for the industry is to invest in the area undue work. Revenue me management team whatever that looks like for your company. And I also think that there are some companies that are working in silos. You don't have positions on line positions react think eventually it will become the position. Is told. We hotel company. And I think one of the challenges is. When we have someone coming through channel were we don't get information we actually lose the upside pretend the media for the state monetary challenging to up sell. Which is which has wide poorest direct bookings investment are important. But what are the things that they we find is their. When you give aid loyalty discount such as the big chains for a wealth members you're giving out of some when tees up into would you like this can of course the guest is going to say yes. On the right are Darden that benefit. And the better operative India's happy new year as a benefit is someone who on want said the Fed. And so. Oracle oriented thirty guest book is the whole people get your reward if they booked direct. And interestingly. People soft like into that limits its much lower than one would expect even at a very Ralph a rewards such as a cash award which doesn't mean main product. And I think that's actually a great way back your first question of reducing Lincoln our cost to people who admires fought. Counties. A day do you dementia know something that doesn't carry a lower cost but I would argue that on these things that you. Look at and to additional classes always somebody with annual market as a target trying dot the only solution that's going to generate more incremental revenue and slow revenue. That duck under the past and when you're a smaller hotel chain you can develop this technology on Iran's you have to rely on that. Yesterday an implementation yesterday when he PI and it's not a simple as a may seem is just offering an upgrade are you know not want charges for a down. Each of these charges for a so it's art offerings require incremental cost and effort involved and on gone gone that's totally to the initial question of an I think is go to guy. Right away then I think we almost have to look at our customers as two separate types of customers the first time customers and and the repeat customers and the way I like to look at it sort of the repeat customers. I say that we have an intimate relationship with that they sleep with ups. Eight. M we N weather with your ETA is it's a transactional effect now. So now wham bam thank around my reservation. I hear there certainly does that it. And get their stay with us as our task to build that relationship with them must do get them onto source media. To get the majority database to get them into our email marketer lamb and mark them aggressively and build up long term relationship with them. More importantly as a target areas nature they have an amazing timing your broccoli so they wanna come back in the want to maintain that relationship with it. So that's really important the other partners alike more difficult. Our which has getting in the customer the first time that's what was referred to earlier we go compete against his guys view into war chest and all the things or marks mentioned are important things that we need to do we need to. A protect our trademarks we need to make sure that billion are key terms. But the one thing when you talking about. You know the cost of acquisition men one of things so drive me crazy is is the matter search utility businesses you have to look at. How you spending your money. M doesn't actually make sense just as you stole it from the evil TA is doesn't mean that it was a of valuable transaction fee. So the data CPC thing and you bid you the same trip advisors somebody is on European trade now. Two trip advisor page bid might post a higher Euro was dame but they saw that everybody and their giving CPC. Out everybody will buy it. So you're gonna produce a CPC bulletin against Expedia and in a bid dead up. Alan amateurs can quite to a say cost it 20%. OK you saw the for a speedier than just 1% nuclear potential is spent on acquiring the cost model wasn't just about what you anyway. That cost more than welcome Expedia OK paid a commission that's fine. By then you have the chance to get them in do you Baird and into when their cost and over again. And you can reallocate those resources to actually acquiring a customer who wasn't just about ability of does. Again I think I'd love to have everything Barack. By you know it's sometimes it is the fervour is just a little bit too far you need to use you know. Common sense and figuring out. What makes what makes most financial sense for you in gems getting new customers for is getting some reasonable accurately. Of China Libya happen businesses. Adding it it's down believes say but clearly you know keeping actually wary inhabit those things and places I was gonna start a how has the folks out here are our long when he nonetheless because they see people smiling and now they know going way they're sending I'll bet there seems to be touched a nerve gas. Senator Mike coming. Tiger period the. Or booking that come circles conference this topic came up on one of the things that was nest daily Vincent was broke up was a number of Wayne which is that they could actually. We translate for and that along for a small company like mine. Here is down stay whether it works IKEA do. The rates. And never touches the question of the young past. While other values due ardour channels not just the OT is all the channels bring to the table. How does that value really because they know with revenue manage risk. In some of them veterans of the game. You know it's it's very cost focus sell we're already are at their values they're weighing in depending upon which your product is yes yes. The Q there was agreement hourly rate so you can do it in Czechoslovakia. And they're gonna book if you golfer. M enter me tonight is summit about a book Europe hotel anyway through whether a third party. Bidding against them and add ridiculously so stunning comment ultimately it's it's detrimental real. Sometimes. Analysis gad Getz as under analysis mourned where we talk about the customer lifetime value under former lump. However error. Weekend game that customers active globally what the same thing we gained gained add customers when they check. Let's not fight for this customary. On the meadows agree. But let's get them in and then. And then gained a lot of. Every detail taken for about 5% CPS family has a deal like that. I really think it gets it goes back to. Nobody sane enough power error. With these different companies are out there because they are relied value is just really under steel and in where we as hotel years can focus in. I'm driving. More direct bookings and taking care of the customers that we do you have that interaction with. And scene where weakening increases. In our most profitable channels were still partnering with balance these different players out there at the same time. So if I'm. Does that so that I think Cuba if funders actually. Very relevant. As the one we meet and to think about hotel we think by US best tickets won language. They'll purchase behaviour is pretty much you know one. Want to start getting out of US localisation becomes critical. Q might do to turn the lighting is upset US rate difference when you could be GE you essentially. Each you'll see in US we have pretty much a domination and Expedia which now includes hotels dot com booking if hotels dot com what does travel last continue booking dot com. There was driven by just three rate. You'll be your up in Germany no longer likely. Do you go to Scandinavia has taken other point. And the reason these. And these smaller channels are still profitable and there's still survive and is being they've been around for a long time. Is because the content has localised and that's a reason why booking not calm and especially Expedia now. Is focusing heavily on local position on the content. And then it has some relevance also to do you wellness away for example. And not exactly the percentage of traffic that comes from Japan but I do believe it's a significant amount of traffic. Did your tracks in Japan and this has the challenge said B. Actually stumbled upon very earlier Expedia. We did not have a Japan Japanese want to sell. I believe some 3% of our traffic. Bridge an even in Japan one shave about one issued a warrant. And and in a going back to the hotels in key gateway cities like new warrant care San Francisco where there was a lot of international traffic that comes and I'd be worthwhile poorer and hotels to consider breaking down dip Warrington destination peers. And then have. Appropriate pricing and revenue management strategies for a lot of spastic market segments. And I think it's actually quite difficult to get the idea now where it's time. With energy Ken Whyte the die you're their guest is cheese overtime was hotels kind of were guided as the group die you customary. The business trends Ian and we have asthma rate was another way to yup if you see oil unity is actually asking your booking prices are you business your ouija. I'm I think that's possibly good question for a tells me ask you restate its near a deal around. You know what justice coming by that channel when they booking and you know Luigi gases carbon likely Ross tells spent more on property. I'm the industries in gas for instance unselfishly give our officer. There before doctor a lot of Bob's der apple told book direct companies and oil fell loyalty programs but you also have doubled in dot com. Member alleging a scheme have do you speedier members a leader in its. A suburb liberal forum on the stars and top tall spotter spitting in the will conduct a ingenious scheme how do you look at that from a toll perspective. Love the margin aspects of it very of the genius is geniuses down 3% more get a thumbs up. And when joins genius about that. I'm you have the accelerator program from a expedient way to Jean you know the only thing accelerators is there Baden why men and put. And and it accelerates the reduction of Yuri DRS can't sell amid a mile dot respect of if you look what's happening at NI CO while expedient exit becoming more Malia said. They're moving away from being in a T a and for the kind of Bristol deal to hear what an audio and lodges an online travel agent want to travel agent. Travel agents somebody help to make a decision by decision for travel. That's a traditional travel agents so that everything they do in the very heavy pivot now become marketplace. I'm marketplaces very very different from the travel agency. And you know what we'd love travel agents as as a as a hotel here as we joked earlier. Players fantastic resorts we love on a small company we love people. Who were able people or technology zeal to appoint people to our properties that they might not have known about. Marketplace you know we're to serve well what are they Collard a Turkish bazaar something iPad got a high is better. Get a TARP I'm Anne Archer. No matter how that helps. Hotels and much or how it helps the consumers I can understand how else Expedia. You know Tim Twomey that that the person business as one that's sort of balances. The customers' needs the gas needs that holds needs in the partners' needs and M shareholder only take and I think the key point the way the movie's only really pleased as shareholders so I'd bet I think that dancers get into you. So effectively just scanner against am particular bit of a different approach here turn to everything we're attacking about picking back. For many many heroes there's just been all live part of our cotton awaits unlike a different options being offered are wide of new way is our distributing our inventory reads in and and contact. Works with these genius pro rounds aura that something else. But at the end of the day it really comes down to. Where is your hotel Europe in individual hotels. Best after more mex white is your after more mex and back in Kristen touchdown literally in the last session. It's now always gonna be compared to how you're doing on the star report. It's why is going to work best three your hotel no matter what the make up debts source on bursting ending are not under different. The main drivers. There within your mark get for your hotel. Q do it for a group of hotels were region has to be for you worst specific cutout. And then how you get there so why is the makeup of that in deciding. Look at are the analogy except you have three you were particular hotel and deciding how they get their as a hotel team. They managed then to distribution. Market mineral converging they have been for quite some time. In many organisations they still sit and separate places they have separate reporting structure is. But they can get murky. Capped a while especially when you know looking at the true cost of the Buckingham that now yield. At each of the different channels recognising there how we've equipped. The future revenue manager in our conversations with Bob the plethora of choices and the bad that they remain upbeat market areas they mean add. Have that the latest and greatest in distribution. Other revenue manager bid baby bell how to coax out the best yield for their properties given the cranberry apple analyst. What we need to deal with this new generation of new breed of revenue managers and then also how we find them so. I think it's very I think it's gonna be. It is really looking for a different type of person in in most cases we need somebody who is a true leader. So somebody who can control league. Will need a hand to communicate and influence. I think influenza areas are T with debts and it's no longer going to be somebody who. Our embassies vary cannot old school back. Lot of people still think of revenue minutemen and a sway is somebody who scanners at seven NN is in politics per cent. That is one piece of neck like. Really the key to rule moving far our NNV insane. Debt our industry and how we do things San even envy and sing the role as a kind of a different raw I think. Kids kids Indians in the key here the discipline within this industry. Is looking for somebody who was just wrong leader or something you can read a team. That covers all of these different areas. N derived stem tax whites and achieves what I was calling that after more revenue mix that after more segmentation mex. And somebody who came to communicate. Across Aldous appliance across all different levels somebody who can influence change across it organisation whether it's a company. Large company. Worried hotel love our. So I think it's really truly looking for that different type person and who can under steel and are these different users and be able to beaded these. The key players that run these different disappoints. And I think that force that we give those revenue entries need to be very flexible because. There's so much changing industries is in you go look at some hotels mean. Even the big chains there have dared dash Forrest with which they use for their weekly ready measure reading. It's so went a quick video Skype group it's guy. You know for just a few things trophy and amp. You know few things but you know how do you react to something like that the last minute booking had to agree on how do you segment that our inner flights away. So that that becomes party discussion you know uses giving moved into Europe and drug into some other bigger bucket because you know inside so I think. We need to invest in those two wars that hold internal decision making up by two basis of the when the new radio comes out next year they can quickly understand that. They die within a particular bad being. And then potentially tell their appearance of that as a good or bad thing is somewhat proceeding so that something as income in that simply derails the industry. I think all sure what's what's important is. To understand what generation of revenue management we have now one point always is innovation that became relatively there's innovation there. I'd sell indeed let's come up with revenue management they could reservations department at all now revenue managers. 2.0. Is there's only show not as it's done the revenue manager that now was looking at a dog or cat. Distant managing dement. The new revenue managers is now managing demand that actually creating the Mac saw. We have to look at it from that point of view without tumour just sitting live with input sayers a digital weather was happening and managing the demand. You're responsible to create the man you equally responsible. To create demand and what worked. Bratz for example is. We put all draws revenue generating functions under one umbrella. When the revenue manager now. Is actually dialling in into that weekly did you do poor would emergency to talk about web traffic. I personally am about key words about what would joining. Etc. they are playing their role in the digital Warren. The same time we looked at sales and we said when announcing it is a distribution China. We talk about distribution and Jarron maxis is. Given Marc. Is cheap distribution channel it's inexpensive wine they foot lakeshore juppe board. Sears manager is your different standards etc. so by looking at the holistic distribution due. And allowing that revenue. Managers at all manage accordingly. Then you can get them tool adjust and adapt and your total annual raw which has you're creating the Mac do not just managing the match. Have part of my for the struggle I threaten this morning we announced this morning. It's OK and how many of your revenue manager is the 12 within Europe positions. Say. Henin held goal of these weekly hammers were agency leading civic thoroughly understand. How the businesses being dread MM. All the third peak as strategies wells tactical be behind the e-commerce. And digital power spent. OK couple here ounce. But in the joining L and a jury saying and that really is the question the question is how we quit so they're sending kind of with a lot of respects out. You know there at about whether going OK gap quite regularly share from the group's Ramadan you know which of medicine and what are the channels that are driving their S. That becomes very difficult because you're on my giving. My giving. Is it get it as we've all discussed at euros or distribution placid white of the chance pry open next type of white. Goes into the revenue and the true passed a fair. Sell I would argue that we get back to their bureaucracies explored. And how you can immigrate to add those departments perhaps that owners scroll while Ryan united Duvol overnight. But just you know see if that's the case that would love ballad about. If we have traditional revenue allergies we suburb show appearance here that most of them are kind of turnaround in revenue management plan. How would bring them how the skill set to bring them into the remainder coming to some of them happening to death or you know do these outfitters. Or exposed to a bill got a revenue announcement conference. You know have built their data selling either and other things but how can we expose them. To add best practices in Ireland distribution make cameras and M night and just ending decedent simple terminology. They've got us into that. I think pro. It is setting the expectations. Can including the definition of what it means. Today serve to turn it does hold that position. A I love the way you play you know revenue management. One Darnell. Arm it reminded me of some bad they actually for a guy that I've seen add a couple of times written is you know this discipline used to be. A report out on what we get hand or arm more are more or less today it's kind of curious what we're going to deal. Arm but where we need to get here all year as in here's how were goal we need to get better. And so really that's the expectation of the discipline is how're we gonna get there. And so first create that definition and make sure everybody's on the same page of the expectation. And figure out why is preventing. That person that department from getting there. Armed DNA direct I guess that reader that innovator without that influenza do you have a great players leading yet. Am NN do they have enough tiny if they are great tech person do they have enough time so I think when the first points I made words. We have puts all might armed us person's plate or in this area. Of responsibility yet we've given them. Very little additional resource as a towards. N until we have to take a look at what did as they need from resource has education earn exposure are a voice at the table. Arm aren't these things are key. Ten of the doubt imagine Enron followed by digital marketers and revenue managers would give it would get what gets measured gets done. And the measurement that we're using as an old measurements debt I can tell you how many median Z denim with honours were there ever single minded focus on ADR. Alarm then I've seen but revenue managers who really stupid things are not deterred if that. Break commissions got the commission line never really comes out of a deal that at the top line so what you gonna do very it is a manipulator. It's you know from a digital marketing I give the double minor. Our search oral lies buried sulphide one into line just by brand jams and have a real life style bodes a lack of understanding about the obvious works I think we have to relook at the metrics that we -- we're there we're judging people by. M I'll sustain we have to relook at our accounting methodology because. When weigh in when we're measuring things in a way that causes people to do things very against the business at the end of the day what you're up we're in Rafah rate and stop right now. Direct measurements that. They're not match. We also took a management contracts because. Style and music critic can Austria and management contract that drives every revenue managers can mandate that he's made no decision yet that is a change yeah. So I think there is also. We'll put four Charlie you have police said. He you have to look at new sources of driving you do man and I think has been mentioned. Enters new mention as well. The term revenue manager is kind of L one dollar oh it's it's by saying it's more for distribution strategy now saw. Most of your organisations are only Marietta's under the quality distribution now. Endeavour team distribution that managers' revenue function sales to the advertiser with e-commerce and everything else. It's Solomon gave radar functions sell. To call d'.s twelve Serb to a revenue manager says Kenneth might. Nine misnomer made fundamentally want to go back to the point of engagement how do you create that incremental the man. C had little better than. Six and you engage with the guardian snubbed every segment of guardians can be engaged by aliens a medium for example. Utah mine your don't have to Amylin and sitting right next to each other to have they had gone darn if you wanna ask a question they'll skied each other. If you take the same situation. As recent as was fifteen euros a goal Alaron fourth people horrible a castle for people there have on the stock and each other there's not Internet. And you put these two people DB outcasts. By were to give us a more. So the question becomes are you engage with people quarries was consumption of information and whose response to information is fundamentally different from what B new oil long. Anal there's a lot of innovation in digital media a company like rocket fuel they're gonna do that became a targeting and engagement but even the not to read if innovation and displays can now keep pace with the changing behaviour so. My input on this would be that we need fundamentally identify user behaviour by segment Ning case Cramer can instrumentality. I'd like to just now coming back under par the question was asset had we. So that they can be compared and I think it's as one very tacked always do that is how they dished out tonight tell me truly on the executive committee. Even if they know and non we wouldn't be in those tapes of discussions said the it comes time to our king training resource has. I'm becomes kind of putting some into an important conference that there right now west they have a ceded the table and I think that makes a very big difference because argue we it's the most. Business results position in the hotel solution actually invest in that position. As as HS ma ying digital council member which can also join major semi I agree with that I'm in the revenue one. I've you know whether I also want to add just turn to the point of thunder and points of the position who recently had institutional owners say to me. Come and an attorney general army energies in the room back deal literally said to me. This revenue director position is more important than the general manager position that how tough mean for a in order to say that that was pretty debt. How to protect and they should not nearly fourteen of those managers one thing we've done is. We want that reporting guideline where the GM should be in charge drove stroke risk and operations and I said. Financially portal Dodi general corporate structural. C is a marketing should report to their vision of corporate structure. And ad revenue management should you port there. And when Morgan to date revenue leadership regionally poorer. At corporate spending on display size of the organisation and the beginning. The biggest and to have died when we introduced this is then the jam manager is not longer generalist. And and to wise yes you are. Biko's he she's going to be focusing Hahn. I'd driving to a risk being held accountable to a bit of advisory toward desired school. Overall. They are still have responsibilities already piano. Backed. It doesn't make any sense for them to be making pricing decisions. Installed either the revenue generated teams help their hotel as a responsible for their hotel or so that's where their input would cumin that I wholeheartedly agree with that we point would not until. No deal power that revenue per cent. Keep in. Good as well we we have done that yet neither a I'm hoping we can push them over the that pompey get together and to do because you see have these amazing general managers have sold got to make agenda gets upgrade experience. Doesn't mean they're gonna be good at revenue manager led and focus on the customer and the customer experience so they come back and become repeat visitors. Let them be responsible for the cost related to running the physical property. But somebody else responsible for driving a time when you take that stress away from them and they need to run the hotel figuring that much. So travel distribution summit 36 as the cedar revolution and we we have here. They would change our row acquisition but you're not an exit there in jazz but bid quite frankly. The hole in nature are AMIS channel distribution in Madison that can be carpet there were all addressing. Has changed and they all only thing we know was there will continue to change now old now throw this out in the mouth on the T upper question out bear. We have an additional. Arena that we talked about oil but today setters are option of large European Bailey. We never had that before this is this is near when its new heirs of just a few years ago would react quickly. Sell the old carried out and how we did revenue management how we did different channels and channel. Management now is out the door because. Its larger. It's larger. So do you have any strategies at Europe companies especially within Ali channel distribution that takes into account. Either losses or partnering a sum up our opportunities. With there being beaten I was at a conference magellanic go with chip Kahn lately said. We much else will have sports we don't have a business guy we we will and other than anything you guys have. We get something else so you know we we should partner. How realistic is that in any what does that mean into your where. Revenue next let's cable Everest but pick your business Centre might be in the world of their B&B. A great company generated. Yeah I think I think that's a great question. And failure to be following news. Our caller hotels recently acquired one fine stay which has a higher in Britain. Off here in B&B. And pride that I believe hired had invested in them. If you also. Look at Choice Hotels now has a tab with renewed got twice died Palm Desert town that is vacation rentals. So these are all. Six local he supplied. Condominiums are wreckage and rental units saw and going with banners Demeter Roth. This industry is changing over cents a hear him be a rocket under seen prior to that no one really fired sleeping and someone's next Matra Sorin couches in the living room. Would be a viable proposition. Bed the user behaviour is changing. And I still believe OK it's still in its infancy it's gonna get bigger and bigger if you think about. Does have physical equivalent. Most recently told barred par 578 years ago it was only college student Debra Prada. Plus 17 years people from of page Croat and in the roads are an carousel. And the previous generations tend to follow the newer generation as the dark newer technologies and and their spending habits. But how even idea of anytime on any offering of the eye catching our you know debt when. My family and I am hired Lehman or any L I'm looking from a space from HTTP children's Bradley's recent. And M iron Oregon alert when I'm travelling McCann. And in European bit now. Where I'm travelling on my own for business then at a hotel. But in that particular instance when our dad to teenager is now needed television for everybody in the round surely. Well that's exactly is because. What about what I'm trying to arrive there does this phenomenon has only coming in bigger and bigger but think about Duracell Fabius a six or saw before Europe. The teenagers. You know ventured into MB and B because of there's a subject there are many people comfortable where. But we're the opportunity years for a traditional hotel brands and that's what I was trying to private payers. And they have this enormous expertise in running an establishment that's specifically geared to serve as guests. It's decoder then this expertise to essentially mamma and par didn't personally don't know all. How to run an establishment how to manage guests' expectations and and also. On the bus so what does us two things falling. No establishment whiners. The eruption of the Libyan B Martin that the lodging does vastly expanded to pull people will travel. The board number two as. Dad it allows them the opportunity to dramatically expand the size of their inventory think by opening an asset. Men about the Mary had a delta and at a three Fauria one project. Assam have pronto economic cycles. But if you access this argument of inventory the cost of acquisition is minuscule and you can shrink or expand. And the pool of inventory based undermanned. An offside just wonder how many of the melodies that are self class play. For a property in particular resource property to upgrade and our underutilised in certain times during the day. Especially if it's more of the corporate might get and there are diary now you just having them they're here an EU average timber going bad too rarely imagine in your now it's meant. Came out below average by doing some of these you know I'm part of partnerships. Before everybody is very concerned about the erosion for. Up market share and end just the changing nature. Having MySpace and other things in certain back yet. Around the state of the powers that aside and my question would be where does the revenue managers sit sentinel that I didn't even where. That they can away average and yield and hide its and they diarra. By its money. So how can that now just again just my suggestion is leading sadistic sell many other things that real average. I don't know if properties today are appropriately. Taking a look at our the opportunities as they get nervous about what Elizabeth. Likely to look at corporate rates stall if if you thought that annual revenue manager is in charge of total revenue. Then I don't see. I'd add onto the problem in fact. In the end user distribution platform and sworn as we said before they have downs they have. I don't know it's our broadened to ensure that we capture that guess a playback version would and we have. We have guests. Again he guest stay in our hope come experiences par and our doctor Laura I don't nightclub or. With a beverage venue. Nothing stopping arsenal day from speaking with their BMB I think as an industry we had this less likely to reform bill years in 2003. And which for being a more sustainable missions that within 2008. So last Battelle I would I would say less. It's a bad anxious let's not fly let's say it again another get tool. Emotional about that best action under the map falling anyway. The rock and municipalities. With Dick tax benefits and we support every MB and let's work together somehow we're BM beat. How would this. How we work together and on wrong we don't work with them today we haven't had the chance to sit and think I would. I partner with Ambac it's on our mines act which would. Which would take every defend approached them just on bad. A better way however I'm paying a fine there and a B&B because they happen to be with my unruly teenagers. I think next time then I come into town as a business traveller oneness day in a hotel what better way to expose need to edit and by the way go direct marking. Let then to market to me and tell me all the wonderful things so the next time I go there and there are my. Armed when I'm a different type of travel Selkirk again I'm just bring this up because there's all goes under the umbrella of revenue management it's challenging for I'll pass. And pardon at a modern when a hearing on the panel which has elevating the position because. Revenue management 2.0 we're three point Alan Levin and we obviously the power to think outside the batsman paradigm antiquity we Shia oft. Customer behaviour and decision instead of finding a panel will average yet. And our make more money for the onerous. For those wasn't on the resort destinations of the Caribbean view mark up process nine mile existed for a really long time. State of the fresh out of the process and allowed people. Not only. To purchase of the two people to put their units on the market and I would disagree go to place for people to tattoo that we buy somewhat self it's gone much further than that. Its creation of my god tells. Very you're you can have one hot one room in Europe my god tell your. Our embassies Ibis is visiting San Francisco and Europe is causing pressure on the real estate market circus people's. Make up one money. When dean is out in they would place in a long term so. It unite it's an interesting proposition I think what they've worked. They're that the proposition though most think about as Greece's bids white people book which limits past conferences and community. And the community aspect I think they've built out with really great marketing program I no matter how much true community is climate. But I think hoteliers need to move toys and you see them inventories are you see them are building out its open spaces where people can read what people can work that's more comfortable. Big borrowers and reliably places where you could it could be more community. Our trying to think about how the how to deal with people were teenagers. MM Don one. The possibility of connecting number nine not confirmed. And building that trying to build out things you see this happen suite hotels like embassy suites. And things like that we could comfortably fit a family so I think you're gonna start actually seen hotels move more towards their three C mile. But you're also gonna see here the NB I think. Kicking and screaming in move more towards a little bit more towards a tell mark a special game in countries have stricter regulations fire safety health. Those sort of things need to start being guaranteed. And you get seal that the more movement towards using one woman joins our cleaning things like that so I think there's. A place for bottom to exist I think as a distribution channel. I'm have been wrong many times in the past like buy configure how Google was gonna make money flows. I don't know why a BMB would do their I mean that's that's now don't proposition and by clearly. Yeah that's right doctor Russell dancing the customers averse to risk the state got that that the shareholders I think they can make so much money rather possess only people visiting there they can monetise. But you know to me as near the end user I'd love for them to keep deluge of someone out target or tell. If I want something a little bit bigger from my family. I'll do every bit. This question on the back. Some might question lawyer. My son Benjamin from from wider question lawyer regarding two. And customer acquisition in the direct channel. Is we talked a lot about. Acquiring trapped under more cost propose quake competing with held Tuesday area. And that's much about. What happens with a traffic on the side to converge a raid and performance of website Thai immigration as a whole quarter's revenue management owns NN and U Cheney's. Influenced performance and sides and work with agencies and a digital teams. And to move the needle bear because the final cost of the acquisition is truly. Just as much impact of bagel block. And the price of the bid as a does by. The kind of raid of the side. So curious kind of hot how big it would hardly as a for you and what are the metrics. That you track to work to improve the performance. It's a very important actually public. Because their revenue managers is also as I said in any powers meeting where you're talking about what proportion are we placing it. And doors boxers on the website we inaudible as a primary list date. And doubt we have dramatically at sub board. The traffic through if you had any day if you have. John influence judgment on the cellular suites. You use doors boxes and that yes they talk. Net revenue leaders are involved in the e-commerce. And website. Placement of their rates the put more auctions helped push forward trade AB testing is a critical one we bundle with every month however. There is not bantered with the demand where revenue is exiting and a wink maybe vesting or in a meeting to discuss it be better off what you're going. But it happens made a quarterly basis test lab and more agree. About without tool we need more. Individuals on board teams to be able to accomplish that but that I agree it's a critical lord for them to be involved then to get home on growth. If affected at her again might what he's saying ears. It there are very Varian vast and that it's now it should be a separate leading it lobby power of the build the one revenue needing would Everett's I'll add your particular hotel. Is dad be discussed as part of that this strategy. In order to tick capture more revenue or capture more share from that hotel. Under end end you know it's all about. The keywords the promote sermons arm the target IBM sun the tanker traffic they're driving back. At the end of the day it's the conversion that Maddux the conversion on the website. So what are what EU converging and how can you convert more. And everything that goes into that so is really its one discussion one holistic discussion. As part of that. Weekly revenue needing are however after and hotels are doing should be weekly that. I'll I like to make one more comment tapping potential bid backed European B. I. My opinion is that they actually coming into top business starting with the independent boutiques. Why there was an article recently about. You know the real moneymaker for their mr. brown hosts. Not the one laughs and because. More than what must appoint Dieter Zetsche ever built though the year around process general dot half time when there will interrupt someone individuals went around the outer space. And because that is a money maker that is. Does sun make a dot that's likely hotel just distributor of the rooms in different places. So if that's of the money is in their they have huge valuations are deathly coming volatile business. But as a huge opportunity for than you know whereas whether the two major but he is for the US market you know fix B. And Priceline they've already established whether there are pretty cameras on the top businessmen are moving down into the Caribbean B markets if you well. European Union area hasn't died into the hot tub as a support basis shredded. Worker Todd tells a restart them what agree up it is say let's eliminate this for an Emmy friction and do this a rate way from the beginning. You know let's. Have reasonable commissions words share the did imagery experience and in their perfectly attuned to do that an error help that it event that the G businesses they did again. How they get in is gonna be indicative of the Ressa relationship. What I thought I would go to another distribution down. And that's customer might not like. Just quickly to add to the question that you asked about emerging on the web sites surpassed their position I think that's very good question. Articles about who took hold last year of looking at revenue management as a distribution function rather than just pricing. Which has four Marc Byron what's been buddhists in most cases videos show. It should now be two separate people or should now be two separate teams and so we knew when you spend money to acquire a customer bring them under the side. And there were speaking viewers to lose them. M wide a lot of hotels operate who is two disc players much content. And as many choices to the customer as they possibly can or surpassing fallacy that. But a lot of people still. Kind of a dent far well. Think about M as our new gold hammers Zahn one particular power deal on want to loitering around in the side they wanted men out because the longer you stay on the side. But I'd be higher declare fares will be delivered to file off the you know for a from the commotion final. Back in the day when I was an experience like basics around us got maybe seven. And we used to be pleased to sell multiple products and someone would come into book ever mature them got gold and quietly got the scheme which of them the pickets and start. We found it was a big. And craft and convergence. Bread every single instance after a customer and make an end but again input could be entering the credit card entries and detailed what just one more collect. We got rid of bother so the killed a business which flows activities business. From the prix booking perhaps we first of hundreds of millions. And if someone to Booker on the dame come and book around and get them out of the door and then re market to them. Sold a classic a win them among traders a first step that he e-commerce a position needs to do Wistrom of the friction number of takes a number of pages a number of inputs. Get Dem M get them out that's more profitable than having white around money aside for now it doesn't generate commercial. Hold on blinded by satellite entity go to all the way the nearly two. Susan highway users sir question for a Chinese since he wants stir to view really friendly with Caribbean be so. M Gatling polling denounces could do. We see Korean. Current radio. Lazard the question is. Charlie would you it's would you allow all the Eddie Indy gets to just come and check secular Nortel will receive the keys to. As relative probably outsource revenue are out of housekeeping to forget to leave policies. As as a potential for. Working with a union probably generating more. Our revenue for the hotels and in using on demand housekeeping. When you need it in Jekyll arrives at a crazy idea but would you even think about that. I would yes union to agree and this is a wonderful idea that in a market where there annoyed unions because that reality is. In the big markets. Tool and buyer or an idea where I want. To give an additional function of the front desk or and warehouse keeping would require some. Union negotiation which proudly how we want to do now. In the markets were Illinois unions absolutely it's we should we should think. Differently. Out of the barks how we can provide some offer our services that already had in place. Jules. Libyan guess one up. I agree with that that we need to think differently. Many tens hoteliers get stuck in how we have helped works today. I had never forget where wires. Would have that was about the pain. Conference a few weeks ago. But there is Alitalia that tact about how. Many years ago his room service arm our revenues were significantly declining. In hand arm in these are people were ordering pizza from outside the hotel. And so would be made a policy that you want to now turn what a pizza from outside but instead that they did was they point. It sir Henry's with a phone number. I'm Howard the doors and the gas picked up some combat number it was a game room servicing entering the found. They made the pizza and then showed up with no red Jack get delivering the Peter the hotel room door. And debt so that's like Dell links that we can end gold to where crazy. About nowhere has the lead the way it is today. Eight yap so I'd up about assassinating. Come in and acted so we do we just have to think about things differently white is a that the customer whites and how can we give it back customer. The final question have before in DeVine join excess Chernin you have been. And finally generous Baghdad by provoking an end there just a lot of great ideas from both the ideas in the panel today. Backed Charlie Stein mackeown going down the line. To sum up our MS are gonna get into budgets everybody goes into planning merely herein may figure out again for 37. What will be innovations you'd like to see in this coming year are in hospitality distribution across. Off channels. I'd like one thing which has distribution beyond all use and down do we pay by looking at that is if I would like to differentiate. Myself from. Everyone out in the distribution landscape. I would like to technology that allows each rule Cerro. May wrong. David. And my nightclub and this has not will packaging was really this is also. When we say we can add answer not looking out at Barnes and looking at how to distribute. All my. Into juries and attendees and other outlets and again and thinking your legislation where we definitely heavy strain nightlife heavy. How can we develop technology that allows standard. Everything. And distributed this. Without packaging. So. I seek out. We need to be ready for a big shift of big change in how we are selling our products. Armed at things are changing rapidly it's after the start I think it's gonna continue to change anything bad. We are going to be seen any enormous change in how people book their travel priority starting to see yet. You know there's been some articles iron arms different outs that are now allowing does bookings so we chat is a huge one. With arm sees their second worst herein invaders. A nine to eighteen that we're gonna start seeing more and more of Dallas and then we need to get prepared for that and what does that mean for as and had we embraced set and had we be Agile. In hand and be able to key third two. Those changes and don't know exactly what it's gonna look like but I'd definitely think it's gonna be a big shift in how we do things today. Are. Despite from a customer standpoint I would have liked to see. A better customer experience I'd like to see people focus more on the customer experience. I think you know shopping for travel digital socks. And mean it would assist 35 side two million times you have got to look what you've got something. It's confusing as can be you never know if you getting that rate DL well it's just. The problem is it M and I've done on the soapbox lot of times when is not a minor position by by some of these. Players out there winners and tools out there whether big speedy Euro trip advisor there can be amazing for a customer experience. But deal led a minor position of the experience drive. Instead of their customer experience and again I understand the pressures on Wall Street I think aerospace in the marketplace. Freddie appear to be the technology out there that truly helps you figure out your vacation. Abigail B&B actually doesn't really really good Java and the reason they do it as a sort of what gaga. Everything is done within Audi ecosystem you don't have to leave that ecosystem to do. Our chip adviser could be at Expedia could be there but they're too busy trying to squeeze out an extra 12 point two margin for a new I enjoy new things that mean our best suit you. But Bessie Sabina minds alright I think the space in the market I'd love to see it as a tie here that's a about a strike in the customer experience when they add the property. I now like to see that more within the industry and is the hospitality and travel industry. I would like to see innovation in accounting. The Jimmy out. Whatever that they're now the sexiest Hathaway I know I doubt. OK one of the biggest challenge we have as hoteliers as the chart of accounts says that certain things go to sales and marketing. Enter and things that commissions. There's still many opportunities if you didn't have that constraint. Where you can classify those two things in the same place or you could actually meet the investment process making the commission payment. Ended you wouldn't be judged negatively. By periods as your budget line for instance so that would open up to the to make much smaller investment on the five we are now if you win Euro top budget season to. Our key something new for some tremor happened Euro go Atari 28. I think simply yes or screening with relapsed doing jarred with net revenue can be seen whether doing is taking the chartered accounts and a re organising a four year. By why that actually make the real China accounts more relevant to today's business and that's gonna take some advocacy. I think when you can invest in those things you're gonna paid much better experience to guess that enables is other things that Europe you're here and retired army now. And in my opinion I think they're going back to have you engage where they're different hardy and says a different market segments. There fundamentally one of the things bad. Large industry hasn't paid so much attention to what folks I'm here as far as conversation. No soul or Perino we have a kind of detail we collect get a free from the time. Essentially computers came into the lodging space. But legal with the traditional assumption that played Peter last mad money be set moral side doesn't work play down. So there was a lot of companies under that specialise in predictive analytics LN one of the key finding was there what made for the last one metres zero. Correlation what I'm an aide to moral. I have a higher correlation half heeding tonight or tomorrow morning. Based on my became a profile and that have been matched with 70000 people away Dell male. But they somehow matched my scene truck based persona of the order steep did Laura state made. The likely chancellor that Al for a state tonight saw personalisation is one of the area's laid I'd like to see more information then. Me while I thank our panel are thank you again very generous great ideas and it the likelihood they'll take a piers sellers really database is unmatched. I'd like to. Have. I think that we have been networking cut plate now so I think grant ready for a copy and then when we come back into this well. We're winding up the day with two sessions while it's all about paying Thelma the canning idea but now it's. Well I'd be paying how they pay how they packages and payments around the world to anybody about the back need to be here we're going around the day with mega search. Panel discussion and so you won't want to miss that anyway enjoy coffee thinking of.

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