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As online booking giants Expedia and Priceline grow through organic growth、Mergers and acquisitions to consolidate one’s position,Large 188bet Live Casino chains such as Hilton Worldwide (hereinafter referred to as "Hilton")、Marriott International Hotels Group (hereinafter referred to as "Marriott") strives to fight against third-party sales channels,Vowing to regain the market share of 188bet Live Casino direct booking。
Hilton and Marriott’s road to fighting OTAs
February this year,Hilton launches the slogan "Stop eating too much",Start the "Smart Choice" global marketing campaign,Activity aims to change customer perceptions,And reassure potential customers,The lowest room price can only be obtained through direct booking through the 188bet Live Casino website。
Geraldine Calpin, chief marketing officer of Hilton Worldwide, said in a news announcement: "Customers spend hours clicking here and there on a dazzling array of websites,188bet Live Casino is such a waste of time。”
In addition to lowering prices,Hilton also launched a direct 188bet Live Casino preferential policy,If free Wi-Fi is provided、Electronic check-in、Room of your choice, etc.。
To fight against OTA,Marriott has launched the Marriott Frequent Loyalty Rewards Program in April,Program guarantees the lowest rates to frequent 188bet Live Casino guests。
Marriott Global Marketing Officer Karin Timpone said in an announcement: "We want to take 188bet Live Casino opportunity to solve the mystery of other travel websites lower prices than our hotels。”
Marriott Marketing OfficerKarin Timpone: We would like to take 188bet Live Casino opportunity to solve the mystery of why other travel websites offer lower prices than our hotels。
188bet Live Casino CEO Dara Khosrowshahi: Hotels want to improve customer loyalty,But the approach has not been recognized by consumers。
Marriott even guarantees,If the guest finds a cheaper price within 24 hours than booking directly,The 188bet Live Casino will use the lowest price,And another 25% discount。
These bold moves stem from the love-hate relationship between hotels and OTAs。Although these online intermediaries help hotels increase occupancy rates,But they also eat into the 188bet Live Casino’s huge revenue,Because the 188bet Live Casino has to pay OTA a commission ranging from 10% to 30%。
In response to direct booking marketing campaigns from Hilton and Marriott,Expedia CFO Mark Okerstrom said: "We know these hotels are taking steps to compete with OTAs,We are paying close attention to the 188bet Live Casino’s further actions。”
These hotels are making a risky move,They may lose market share and credibility,Because the OTA 188bet Live Casino booking ecosystem has been deeply embedded in consumer behavior,Okerstrom warns。
If these measures have a negative impact on the 188bet Live Casino’s booking business on the Expedia website,This is not surprising。Expedia search sorting display,188bet Live Casino search volume will drop to a disadvantageous position,And lower engagement on the Expedia platform resulted in lower booking conversion rates。
Also,Other competitors are willing to offer more competitive prices to cooperate with 188bet Live Casino,In this way, Hilton and Marriott will suffer even greater losses in online channels,he added。
Okerstrom also said: “Consumers come to Expedia,Because they don’t know which 188bet Live Casino to choose。If they search online and don’t find a 188bet Live Casino at the right price,Then they won’t book this 188bet Live Casino,This is the power of the platform。”
“Large 188bet Live Casino chains don’t have a wider selection of hotels than Expedia。People will always come to us to stay in the most suitable 188bet Live Casino at the best price," he reasoned。
188bet Live Casino CEO Dara Khosrowshahi even regarded Marriott and Hilton’s global efforts to promote direct booking as “a mistake”。
“I completely understand the 188bet Live Casino’s desire to increase customer loyalty,But their approach is not recognized by consumers,” Khosrowshahi said。
“Consumers want to take control of their own choices about 188bet Live Casino resources”,he added,Focus on the five years of rapid development of OTA,The past five years have also witnessed changes in market demand。
Expedia is no longer limited to 188bet Live Casino bookings。
December last year,188bet Live Casino launches .9 billion vacation home rental site HomeAway,This is the company’s largest acquisition to date。This means that online travel giants are no longer waiting for the sharing economy to develop and grow,Instead, it is strongly entering the lucrative apartment and vacation market。
In explaining why he dared to enter 188bet Live Casino "new market segment",Khosrowshahi says: “Consumers tell us they prefer alternative accommodations,And we can predict,Hosts will receive significantly more travelers。" He further explained: "The more inventory we can show our customers,The happier they will be。”
After the Expedia-HomeAway merger,Just the 188bet Live Casino、In terms of number of vacation rentals and apartments,Expedia has replaced Priceline’s website Booking.com becomes the world’s largest accommodation sales platform。Currently,Expedia currently offers at least 1.5 million hotels,And Booking.The number on com is only 893000。
The acquisition of HomeAway is the last stop of 188bet Live Casino’s 2015 mergers and acquisitions。188bet Live Casino ranked 2 last year.Acquired online travel booking website Travelocity from Saber for US0 million in cash、Acquired competitor Orbitz Worldwide for US.6 billion in all cash、With 6.USD 5.8 billion to acquire Australia’s leading online accommodation booking platform Wotif。
When asked if 188bet Live Casino is planning to acquire more companies this year,Okerstrom said: “Our focus this year is integrating the acquired companies,But if it helps the company’s development prospects,We will also seize the opportunity to take bold action。”
Although 188bet Live Casino has made many large-scale mergers and acquisitions,But Khosrowshahi emphasized,188bet Live Casino remains focused on organic growth。He said: "I think the long-term value of building this company is its organic growth,We have always regarded organic growth as the main driver of the company's growth。Inorganic growth will always play a role,But only as a supplement to organic growth,Not part of the company's core strategy。”
"Even so,We will still wait for the opportunity,Those who carry out mergers and acquisitions at the right time,Because the company needs to achieve more than 1 billion US dollars in cash flow a year,I have to find a way to spend 188bet Live Casino money," He said with a smile。
Note: Organic 188bet Live Casino refers to the company relying on existing resources and business,By improving product quality、Sales and service levels,Expand customers and expand market share,Promote innovation and improve production efficiency and other ways,Natural 188bet Live Casino of sales revenue and profits,It reflects the potential and durability of core business 188bet Live Casino。Corresponding to it,Inorganic 188bet Live Casino (Inorganic 188bet Live Casino) is more through mergers and acquisitions、Investment income、Non-core businesses such as asset divestitures have grown。
The road to confrontation between domestic 188bet Live Casino and OTAs
With the sharp increase in the concentration of online travel service providers (OTA),Since 2015,The domestic 188bet Live Casino industry has formed multiple alliances to fight together。
July 2015,Kaiyuan、City celebrity、Huatian and six other domestic 188bet Live Casino groups announced the establishment of a 188bet Live Casino alliance。
November 2015,Green space、Hainan Airlines、ZTE and Taihe Atour announced the establishment of the "China Future 188bet Live Casino Alliance",Indicated by the above four 188bet Live Casino groups,Will be shared among members、Member rights and points exchange、In-depth cooperation in joint marketing and brand promotion。
Subsequently,Jinjiang’s acquisition of Plateno also heralds a shift from competition to competition and cooperation between 188bet Live Casino。
The emergence of hotel alliances reflects on the one hand the hotels’ monopoly on OTA online channels、Concerns about charging high commissions,On the other hand, it also reflects that 188bet Live Casino has owed too much money in online channels for many years,Later layout,Lagging technology and data development。Although an alliance has been reached,But how to quantify internal benefit distribution is more challenging。The trend of online hotel booking has taken shape,Users have also developed the habit of booking through OTA channels,188bet Live Casino will face great difficulties if it wants to reverse this consumption habit of users。Also,The domestic hotel industry has not formed an international (chain) hotel brand for many years,At the same time,Domestic hotels perform poorly in terms of size and performance,If you want to use huge manpower、Material resources are invested in the development of independent online direct sales channels to directly challenge OTA,It’s like hitting an egg against a stone。
The author thinks,In a market with ever-changing consumer demands,Hotels should pay more attention to how to improve the accommodation experience,Or explore potential market opportunities in those market segments,Building a lifestyle consumption brand image in the minds of consumers,Let users remain loyal to the 188bet Live Casino brand while taking into account price factors (so that they can get rid of the squeeze of OTA,However, this is difficult to do)。
Therefore,What is more feasible now is to develop constructive cooperation between hotels and online channels such as OTA、Discuss mutually beneficial and win-win cooperation acceptable to both parties,The 188bet Live Casino itself needs to find a balance between online and offline。The tourism industry is complex,Enterprises in each link have their own advantages,Everyone divides labor and cooperates、Maximizing efficiency and benefits is the path to sustainable development。
* 188bet Live Casino article was compiled by: Li Haiqiang (personal WeChat ID: lhq434849653),Zhihui travel expert author,Welcome to follow,Please indicate "name + unit + position" when adding for convenience,Thank you very much for your support!
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