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Post on 26-Jun-2020
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How to regain control over your distribution costs in 3 steps
Welcome
Karin van RheeCustomer Success, Juyo Analytics
Nadine BöttcherRevenue Strategy, Juyo Analytics
The Typical Distribution Cost Audience
Sense of Urgency
Readiness to Act
Segment 1 Segment 2 Segment 3
„THE OSTRICH”SEGMENT 1:
Likely behavior:• Likely to deny that there is a
problem
Recognizable by statements such as:
• “I know my cost at the end of the month “• “I cannot controlcommission even if I
wanted to”
Characteristics:• Low sense of urgency• Low readiness to act
„THE MARMOT”SEGMENT 2:
Likely behavior:• On the constant look-‐out for industry
standards • Eager to inform the rest of the pack on
how to get started
Recognizable by statements such as:
• “We would measure if there was only a benchmark”
• “But….how do I know where to allocate the cost of my receptionist who occasionally sells a room?”
Characteristics:• Medium sense of urgency• Medium readiness to act
„THE EAGLE”SEGMENT 3:
Likely behavior:• Scanning the landscape and overall
happenings • Attacking in a targeted manner
Recognizable by statements such as:
• “What we don’t measure we don’t know”• “Let’s put our claws into this”
Characteristics:• High sense of urgency• High readiness to act
Participation Code:9810160
1 Grab your smart phone and go to kahoot.it
2 Enter the participant code & your name
3 Get ready to show us your expertise!
Every question asked on the big screen has one correct answer. Click on the color
corresponding to that answer that appears on the screen of your phone. You will be
ranked based on your number of correct answers as well as speed in responding.
In a NUTSHELL
013rd parties have
aggressive budgets hotels cannot compete with
02We need a consistent omni-channel approach
03Work smarter – not
harder
Why are you here today?
Understand your different distribution cost as they occur along the acquisition phase of the guest journey
Calculate the profitability of your channel mix in 3 steps
Net Revpar evangelist Jens Egemalm:• Now what?• Be inspired to implement a net revenue
strategy
The CustomerJourney
BOOKINGON
PROPERTY
PRE-STAY POST-STAY
The CustomerJourney
DREAMING BOOKINGON
PROPERTY
RESEARCH PRE-STAY POST-STAY
The CustomerJourney
INFLUENCERMARKETING
SOCIAL MEDIA ADS
SPONSORED CONTENT
DREAMING
COMMISSION
TRANSACTION COST
LOYALTYFEES
RETARGETING
PPC CAMPAIGN
META CAMPAIGN
BOOKING
RESEARCH
NET REVENUE
$100-$30--------$70
-$20
-$5
-$5
Today’s Challenges
CHANNEL PERFORMANCE
1 Validate strategies
2 Influence the right channels
3 Control profit levels
Start measuring to:
Regain control over your distribution costs
The 3 GoldenQuestions
How does my business come
in
How much does it cost
What else do I pay
OTA • Booking.com • Expedia
Step 1: How does your business come in?
Web • Website • App
Wholesale • Gullivers • Travelzoo (flash sale)
GDS • Amadeus• Sabre
Hotel direct • Sales team • Walk in
Step 2: What does it cost?
MARK UP
COMMISSION
TRANSACTION COST
LOYALTY FEES
BOOKING
BOOKINGDREAMING
RESEARCH
But there is more to it…
2: Direct Costs
1: Channel Mix
3: IndirectCosts
Step 3: What else do I pay?
Here it is: Net RevPAR
Indirect Costs
NET REVPAR
Available Rooms
=
Taking it beyondNet RevPAR…
How much Net Revenue am I keeping after deducting all distribution costs? KPI: Net RevPAR Capture Rate
How do distribution cost influence my average rate?KPI: Net ADR
What is the ROI on my Sales & Marketing investments?KPI: S&M Efficiency
1 Assemble your commercial teams
2 List your costs by channel
3 Calculate KPIs and set goals for this year
And now what?
Strive for progress not perfection
GET GOING
Summary of today’s presentation
A NetRevPAR calculation sheet
Useful tips and tricks for the rollout
Drop your business card to receive a NetRevPAR starter kit:
Nadine@juyoanalytics.com
Karin@juyoanalytics.com www.juyoanalytics.com
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