Hotel & Tourism SMARTreport #43

cleverdis

INNOVATIONS & TECHNOLOGIES

Hotel & Tourism

SMARTreport #43

2019 Summer Edition 37

37

WE SEE THE BLURRING

OF BOUNDARIES BETWEEN

DIRECT SALES AND

CHANNELS

Joseph Wang

Chief Commercial Officer, TravelDaily China

THE “TECH EFFECT”

Technology in the hands of travellers… and in distribution

Joseph Wang, Chief Commercial Officer – TravelDaily China – recently

hosted two key sessions at the ITB China conference this year on the

use by travellers of new digital tools and how technology innovations

will impact the way travel products are distributed and purchased. We

asked him why these topics are so vital today.

China is now the largest source market

for global travel and tourism industry, and

technological innovations are redefining

the way travel products are distributed

and purchased. The behaviour of Chinese

travellers today, especially millennials,

has been changing with the technology

evolution. Mobile, APP, wireless payment,

Big Data, AI etc. and emerging new social

media platforms like WeChat, UGC, short

video APP and live streaming sites are also

impacting the travel behaviour of Chinese

millennials. Travel companies should

try to satisfy this changing demand

through personalisation, for example,

in terms of product development and

brand communication. From the industry

backend perspective, the efficiency of

marketing, operations, training, channel

distribution management especially

supply chain need to be improved, and

technology can help to find a way out of

the dilemma.

In the past, you worked on direct sales

in the hotel business. How have you

seen sales channels evolving in the past

years, and what will people coming to

your sessions learn?

After years of consolidations, OTA has

become a highly concentrated landscape

especially from the traffic perspective. In

the future, big hotel chains are getting

even bigger and will also reach a very

high concentration landscape globally

and regionally through continuous

mergers. Under this situation, we see the

blurring of boundaries between direct

sales and channels so one of the biggest

challenges today to the traditional hotel

sales channels will be the lack of traffic

sources, lack of the abilities of collecting,

storing, cleaning, analysing, identifying

customer data and tagging, the lack of

abilities to differentiate channels and to

connect with all potential partners agilely

and cost effectively. In terms of marketing

and channel strategies, hotels should redesign

their product and sales with an

integrated online and offline presence,

a more relevant content with higher

level of context aware, relevancy and

personalisation, to refine their offering

to the loyalty members in order to

differentiate themselves in the crowd and

to be adapted by different age groups of

the members especially the Millennials

leveraging todays' digital tools. "The right

product should be delivered to the right

audience through right channels at the

right time and to avoid one-size-fits-all."

as someone famous said

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