Metasearch Outlook 2017
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The document discusses trends in the metasearch industry and their implications. It notes that TripAdvisor has more visitors than other metasearch sites combined and that integrating with major metasearch sites provides hotels with significant exposure and traffic. However, it also asserts that price is the most important factor for consumers and that the metasearch landscape is increasingly commoditizing hotel rooms. The document outlines several ways metasearch sites may improve customer experience, such as voice booking, personalized search results, and inclusion of alternative lodging options. It also explores how automation and mobile usage are changing bidding and monetization on metasearch platforms.
Metasearch Outlook 2017
- 1. Metasearch Outlook 2017 Michal Juhas, CTO & co-founder @ HotelQuickly 1
- 2. Key players in meta world 2 Tripadvisor has more visitors than the rest together (351 vs 230 mil MU)
- 3. HotelQuickly on Metasearch In 2016, we got integrated with: ● Tripadvisor ● Trivago ● Hotelscombined ● SkyScanner ● Kayak ● Wego ● HotelLook 3 Huge boost of traffic
- 4. Some of Hotelquickly’s deals are really good! 4
- 5. Takeaways ● Easy to integrate ● Low barriers to entry ● Lots of exposure ● Price matters most ● Hotel room is a commodity ○ Price war ○ No rate parity 5
- 6. What matters most to Millennial consumers (age 19-35) is price rather than store or brand. Millennials are becoming less loyal 6 A hotel on metasearch “Consumers tend not to care if Booking.com or Kayak is the actual platform doing the booking, as long as whoever is responsible delivers excellent user experience.” ~Skift
- 8. 8
- 9. Honey, how about we go get some nice room, hmm? 9
- 11. I can book a room online quickly! 11
- 12. Siri, book a room for me now, please. 4-star, nearby! #hurry OK, your room is ready at Viva Garden. This is what he envisions... 12
- 13. Wego Trivago ...but this is the reality! Hotelscombined “3,589 hotels around you” OTA Metasearch sites Wholesaler X Wholesaler Y Sub-suplierHotel 13 Tripadvisor Website APIs APIs APIs
- 14. How will metasearch sites improve customer experience? 14
- 15. #1 - Voice directed booking 15
- 16. Stages: 1. Text-based chatting 2. Voice bookings “Voice bookings will become a reality and metasearch should embrace this change.” ~Skift AI-driven voice-directed booking 16
- 17. #2 - Personalized search results 17
- 18. Tripadvisor: Search results (Bangkok) 1,065 properties available 18 Apparently best-sellers (or hotels paying highest commission). But is it a good fit for me personally?
- 19. Search results on Hotelscombined show a mix of 3- and 5-star hotels. Still not my cup of tea... Hotelscombined: Search results (Bangkok) 1,551 properties available 19
- 20. Trivago - search results (Bangkok) 3,716 properties available 20
- 21. “3,817 properties in Bangkok. Enjoy!” 21 Examples: ● Rooms with bath tubes for families ● Hotels with great roof-top bars for young couples Search results need to move away from the default based on reviews, price, etc… and become more personalized. PERSONALIZATION
- 22. #3 - Alternative lodging 22
- 23. Tripping.com 10,589 properties available in BKK, including HomeAway 23 If the 3,000+ properties in Bangkok on Trivago wasn’t already overwhelming, 10,589 on Tripping may kill you :-)
- 24. AirBnb, HomeStay, … on metasearch 24 With thousands of new properties in a destination, will it be easier for customers to pick a room? Will hotels get less traffic? 1 2
- 25. #4 - Hotels on metas 25
- 26. Google Search: Hotel Amari Watergate Bangkok 26
- 27. Google - hotel Plaza Athenee Bangkok 27 Better price (bye-bye rate parity)
- 28. #5 - Mobile is growing 28
- 29. Trivago’s mobile revenue 29 In June 2016, Trivago’s revenue from mobile exceeded desktop for the first time.
- 30. #6 - Automated bidding platforms 30
- 31. Monetization types 1. CPC ($ cost per click) a. Website redirect 2. CPA (% cost per acquisition) a. Website redired b. Direct (instant) booking via APIs 3. Advertising (banner ads, …) 31
- 32. Monetization types 1. CPC ($ cost per click) a. Website redirect 2. CPA (% cost per acquisition) a. Website redired b. Direct (instant) booking via APIs 3. Advertising (banner ads, …) 32 Manual bidding by a metasearch analyst Automated bidding by data scientists
- 33. CPC models 1. Manual CPC bidding with Excel sheets a. Pull reports, manually merge in Excel, adjust A) CPC bids B) markups 2. Automated CPC bidding a. Pull reports, automatically adjust A) CPC bids B) markups 3. Automated “presence” NEW a. Tripadvisor does the bidding for the OTAs 33
- 34. CPA Metasearch sites push CPA deals recently Why? Because incentives for both parties are aligned: ● Metasearch gets higher fee ● Supplier (OTA) only pays for the actual bookings 34
- 35. What will happen when all the OTAs get on the automated bidding? 35
- 36. ● Tripadvisor ○ 12-15% commission (public tiers) ● Trivago ● HotelsCombined Usually CPA deals. Direct (instant) booking 36
- 37. 37 Instant booking on TripAdvisor (via API integration, not website redirect)
- 38. 38
- 39. 39 With the instant booking, is TripAdvisor still just a metasearch? Or becoming an OTA? Food for thought 1 TripAdvisor among the OTAs on Trivago
- 40. 40 Can a hotel just skip Booking.com in this flow? (What’s their added value anyways?) Food for thought 2
- 41. Individual hotels fighting in the price war 41 Better price
- 42. Tripadvisor Trivago Hotels start using SiteMinder to get on metasearch Hotelscombined 3,589 hotels around you Metasearch site Channel Manager CPA / automated bidding Viva Garden Hotel 42
- 44. ● It’s easier than ever to get integrated on metasearch ○ New small players fighting with price ○ Easy to use wholesale inventory ● Hotels can get on metasearch to skip an OTA ○ OTA’s added value for the instant booking option is marginal ● A hotel room is a commodity (only price matters) ○ The hotel room is always the same if a customer books via Booking or Agoda or Expedia ○ Millennials care less about loyalty, go for better value for money Metasearch takeaways 44
- 45. Brainstorm with me, please! Michal Juhas My LinkedIn - HotelQuickly michal.juhas@hotelquickly.com 45