Wednesday, March 21, 2012 Orbitz Price Assurance + Expedia Inventory = Bingo?

Tripadvisor launched a new online hotel booking site today: Dont look for it (yet) on the Tripadvisor site however - not even as a search comparison option.

Tingo takes a little bit from Expedia (hotel inventory), a little bit from Orbitz (Price Assurance) and combines them into what is pitched as a new offering where consumers "just can't lose"

After a consumer books, Tingo continues to monitor the price of the booking to determine if the price has dropped. As many insiders know, hotels often actually drop rates as the departure date nears when demand fails to materialize. Yes, they raise rates too, but that isnt the issue if you have already booked. If Tingo finds the price has dropped, they rebook the room at the new price and refund the difference back to the hotel guest. Sound familiar?

Similar services exist today for air - Yapta anyone? Tripit Pro offers a similar feature for air. And Orbitz offers Price Assurance for hotels (and air) where they refund the difference if the price drops. Orbitz Price Assurance, however, requires another consumer to actually book the exact same stay (or airline ticket) for the refund to kick-in. Tingo promises the refund no matter what - back to "you just can't lose"

or can you?

Given Tingo offers hotel inventory only from Expedia (dig deep into the Ts&Cs for that) vs. a meta search model - this looks like just a slightly better place to buy a room from Expedia. And that is if you don't value Expedia Rewards....

Guestmob: A New Level of Stupidity for Hoteliers?

This morning, we saw a FB posting from a good friend about a new website, Guestmob claims to offer prices "20-50%" lower than Kayak by pitting hotels "against each other for the right to fill empty hotel rooms"

Consumers enter the site and pick a destination and dates par usual, and then offered a selection of hotels grouped by star quality and neighborhood. Sound familiar to Hotwire or Priceline? Yes, except the hotel name and brands are exposed. As are the retail prices for these hotels.

Next, a consumer selects the area and star level they want to stay in and is taken to a confirmation page showing the selection of hotels that Guestmob will later solicit (like a mini RFP) for the consumer's stay:

3 days before arrival, Guestmob lets the consumer know which hotel has "decided" to let them stay.

Hoteliers: downward rate spiral, anyone? Haven't we seen this movie?

Lets dive a little deeper, however...

First, we doubt that all of these hotels are actually participating in this platform. We kinda doubt that the distribution hawks over at Marriott have embraced a less opaque version of Priceline when they don't even participate in Hotwire. As for the other brands listed throughout the site, good for Guestmob if they have really signed up these chains but we think they are probably shills.

Second, Guestmob is listing competing OTAs and their "pricing." We imagine that the OTAs will probably find this rather distasteful for obvious reasons.

Finally, for hotels that actually are participating in Guestmob, I ask one question: WHAT ARE YOU THINKING?

Hotels have been complaining for years about OTA margins and the lack of consumer brand loyalty. Opaque sales are an important revenue management tool but no one in the industry is particularly excited about growing the segment.

And yet, we still have hoteliers who apparently are seemingly not bothered by ANY of these issues and are willing to give street cred to what may be a very destructive model. Wow.

Wednesday, January 11, 2012 - Keys to the Castle for Hoteliers?, a new hotel metasearch site created by six of the largest hotel chains launched this morning.

With industry vet John Davis at the helm and backing from Choice, Hilton, Hyatt, IHG, Marriott and Wyndham, it somewhat resembles the industry's efforts to drive down costs and create consumer choice several years ago when a similar group created - same CEO, slightly different group of hotel brands (noticeably absent from the group this time around is Starwood Hotels and Resorts Worldwide.) Travelweb was sold to and formed the basis of their non-opaque hotel product in North America.

Different this time around is metasearch. Roomkey is a pure meta play with room results returned in a nice, clean tile format:

Prior to the launch, the group purchased hotelicopter which had built a nice technology platform and user interface (as well as the awesome flying hotel ad that you may remember)

Clearly, and as expected, the call to action is a link to book at the sponsor's branded websites.

Roomkey (thus far) is a tool for comparing prices between hotels, not prices from different channels for the same hotel a la Kayak. Kayak pulls together disparate prices from various sources:

Multi-channel search, which Kayak never really delivered on the air side, is actually quite strong for hotels - and apparently, still an important issue judging from the sample above in which several of the founding members appear to be undercutting their own websites in various channels which Kayak is able to find and display.

Inventory today appears to be limited to the founding chains but we are sure that will grow, at least in critical markets such as New York and Las Vegas.

Hotel descriptive content on the beta site is decent with the usual photos and descriptions, although some brands (who shall remain nameless here) still seem to be returning content in ALL CAPITAL LETTERS. Given it is a beta, there are some photos with slightly strange descriptions: "NYCGH_P015 Exterior" but this will no doubt be cleaned up in due course.

That said, a great feature is the clear link to the hotels' property page where the rich content (and booking opportunity) lives.

Oddly, star ratings are included in the search results but it isn't clear how those stars are determined. In the past, the sometimes seemingly arbitrary OTA star ratings have been a source of frustration for hotels and brands alike. Roomkey promises to add user reviews shortly which should provide another, often more reliable way for guests to gauge hotels.

The hotel chains are not resting on their laurels after their past distribution wars with online travel agents (OTAs) and other distribution channels. Once fully built out with a mobile site, more inventory, reviews, Roomkey could be a potent weapon for consumers who want to be able to compare locations, features, rates across multiple chains and brands. With Google rapidly moving into the travel (and hotel) space and OTAs continuing to gain share, Roomkey will be another arrow in the chain's quivers to drive branded website growth and control distribution.

Tuesday, January 10, 2012

TSA Trusted Traveler Program: Finally, Something the TSA does RIGHT

I'm not usually a big fan of the TSA. In fact, quite the opposite. As a heavy business (and leisure!) traveler, I've found many of the TSA's tactics silly or simply pure theater over the years.

However, today, upon leaving Las Vegas, I got sent to the Trusted Traveler line after the agent up front scanned my boarding pass. I'm an Elite flyer with both Delta and American, the two pilot airlines for the program but hadn't yet seen anything special. The last place I expected anything was certainly Las Vegas.

But, get this! First, there was NO line. Next, I didnt take off my shoes. Really. I didnt have to yank my computer out of the laptop (I did buy one of those Tumi bags that allows you just to unzip awhile back but I didn't even have to do that!) And, I may jacket stayed on. So did my belt. And I didn't have the nudie scan - just walked through the metal detector old school - like clearing security in 1972.

Finally, something done right by the TSA! Bravo. Now lets just get it to more airports.