BTO 2015 Side ONE | Mercoledì 2 dicembre #1 Focus Hall Pricing in a post parity World 16.10 : 17.00 www.buytourismonline.com www.buytourismonline.com/eventi/post-parity Keynote Speaker Alex Barros – Vice President of Sales EMEA Duetto Research Sergio Farinelli – CEO Simple Booking-QNT Hospitality

1. Pricing in a post parity World
Alex
Barros
-­‐
Due.o
Research
Sergio
Farinelli
-­‐
Simple
Booking

2. Due5o Research
Alex Barros
VP Sales EMEA

3. Simple Booking
Sergio Farinelli
President / CTO

4. Parity performance in Europe (August 2015)
3 Star Hotels
Source

5. Parity performance in Europe (August 2015)
4 Star Hotels
Source

6. Parity performance in Europe (August 2015)
5 Star Hotels
Source

7. +
2
MLN
Real
Live
Query
1.6
MLN
Users
+
500
Hotels
Monitored
(in
Italy)
5
Major
OTA’s
monitored
Parity
analyzed
by
single
user
query
and
not
by
hotel
Query
conducted
within
30
days
(november
2015)
Parity performance in Italy
OUR RESEARCH

8. Cheapest Channel
Aggregated Search Data
ITALY - MAIN ART CITIES
3-4-5 STAR HOTELS
Source: Simple Booking, internal data, 30 Nov. 2015
Parity performance in Italy (November 2015)

9. Cheapest Channel
Aggregated Search Data
ITALY – ALL DESTINATIONS
ALL PROPERTY TYPES
Source: Simple Booking, internal data, 30 Nov. 2015
Parity performance in Italy (November 2015)

10. Parity performance in Italy (November 2015)
Direct
cheaper
Iin
parity
OTA
cheaper
28,3%
34,4%
37,3%
44,6%
15,7%
39,8%
66,5%
13,4%
20,1%
53,9%
22,1%
24,0%
75,6%
12,2%
12,2%
Data
by
CITY
Source: Simple Booking, internal data, 30 Nov. 2015

11. Data
by
USER
COUNTRY
Parity performance in Italy (November 2015)
Direct
cheaper
Iin
parity
OTA
cheaper
51,7%
31,0%
17,3%
49,3%
24,4%
26,4%
57,2%
28,1%
14,7%
57,0%
12,5%
30,5%
14,4%
15,0%
59,1%
18,0%
22,9%
41,1%
22,8%
36,1%
67,0%
15,7%
17,3%
38,4%
25,1%
36,5%
46,7%
25,3%
28,1%
70,6%
Source: Simple Booking, internal data, 30 Nov. 2015

12. Data
by
CURRENCY
Parity performance in Italy (November 2015)
Direct
cheaper
Iin
parity
OTA
cheaper
50,6%
31,9%
17,5%
46,8%
12,9%
40,4%
47,7%
12,6%
39,7%
74,1%
6,3%
19,6%
22,1%
64,3%
13,6%
31,5%
67,9%
36,0%
64,0%
46,1%
52,8%
48,8%
51,6%
53,8%
44,6%
Source: Simple Booking, internal data, 30 Nov. 2015

13. Parity performance in Italy (November 2015)
Direct
cheaper
Iin
parity
OTA
cheaper
50,0%
29,8%
20,2%
50,5%
29,3%
20,1%
50,8%
27,1%
22,1%
53,5%
24,2%
22,4%
21,9%
22,5%
59,7%
21,7%
18,6%
64,1%
21,7%
14,2%
62,0%
21,2%
16,8%
62,7%
21,9%
15,4%
55,6%
30
Data
by
LENGHT
OF
STAY
Source: Simple Booking, internal data, 30 Nov. 2015

14. Data
by
NUMBER
OF
GUESTS
Parity performance in Italy (November 2015)
Direct
cheaper
Iin
parity
OTA
cheaper
44,5%
36,1%
19,3%
51,7%
30,5%
17,8%
68,5%
15,3%
16,2%
83,4%
9,5%
7,1%
4,9%
4,8%
93,4%
5,0%
98,7%
99,6%
98,1%
90,3%
100%
Source: Simple Booking, internal data, 30 Nov. 2015

15. 54,6%
30,4%
15,0%
55,3%
21,7%
23,0%
Data
by
DEVICE
TYPE
Direct
cheaper
Iin
parity
OTA
cheaper
Parity performance in Italy (November 2015)
Source: Simple Booking, internal data, 30 Nov. 2015

16. Common reasons for out of parity
Why oQen OTA are cheaper than official websites?
• Mixed
Rates
• Currency
Exchange
• Offers
on
OTA
(allowed
by
hotels)
not
replicated
on
Direct
Channel
• Wholesalers
/
Bed
Banks
reselling
to
3rd
parfes
• Discount
on
margins
by
OTA
(on
net
rates)
• Geolocated
Promofons
• Reserved
prices
for
registerd
users
on
OTA

17. How to mantain rate integrity
Problem
Solu+on
OTA
Mixed
Rates
Enable
them
on
your
Booking
Engine
*
Different
Currency
Exchange
rates
Rate
Match
Technology
Promofons
on
OTA
(allowed
by
hotels)
not
replicated
on
Direct
Channel
Replicate
any
offer/promofon
on
direct
channel
*
Wholesalers
/
Bed
Banks
reselling
to
unknown
3rd
parfes
Review
or
cancel
contracts
*
Discount
on
margins
by
OTA
on
net
rates
Don’t
give
OTA
net
rates
when
possible*
Geolocated
promofons
by
OTA
Replicate
on
your
booking
engine
*
Offers
for
Registerd
OTA
users
only
Do
not
agree
to
this
kind
of
offers
*All
this
problems
can
be
automafcally
resolved
by
Rate
Match
Technology

18. Take away
boast direct reservaVons using the right strategy
• Always
mantain
a
rate
integrity
approach
• Review
your
distribufon
contracts
and
renegofate
when
necessary
• Discounfng
too
much
can
hurt
your
revenue
and
don’t
make
sense
• Target
your
promofon
by
LOS,
Guest
Country,
Returning
Guests,
Booking
Window,
Channel,
Device
• Offer
(real)
benefits
for
direct
reservafons
and
display
them
during
the
booking
process
• Choose
the
right
technology
partner
J

19. QuesVons?
Meet
us
@
our
booth
Stay
informed!
Keep
reading
Take
a
tour
of
our
brand
new
Rate
Match
technology
and
boost
your
direct
reserva7on
up
to
34%