E-Commerce Training in Hospitality and Tourism

Industry for TVET Teachers in

South East Asia

Application of Ecommerce in the hospitality

industry and the impact on hotel room
revenues
Speech:

Page 2
 Training Rule

On Time HP off / Vibrate Open mind

Positive Discussion
 Training Rules
• No hand phone on or no chatting during training unless for training purposes
• Positive discussion
• Complete the attendances for all 3 days
• Participants are obligated to finish all the task:
 E-commerce Initial Understanding Questionnaire (before the training
starts)
 Initial Competency Test / Pre-Session Online Test (Day 1, before
Training)
 Final Competency Test / Post-Session Online Test (Day 3, after Training)
 Final Assignment (Day 3, after Final Competency Test)
 Feedback Survey (Day 3, after Submission of Final Project).
 Failure to finish the obligations can be impact on your certification.

Page 4
 Meet the Team…
Agung Biantara
• An International experienced hotelier
• Director of Revenue Management in 5 Stars Hotel (Four
Seasons, The Ritz Carlton, GHM, Anantara, The Mulia,
Dusit, The Datai, Sun Siyam Group and Ayodya Resort
Bali)
• Speaks fluent English and Japanese
• Worked in Maldives, Thailand, Malaysia, Jakarta and
Bali
Yohanes Retanubun
• If you need someone that can maximize your revenue
while keeping the acquisition cost minimum, then look
no further.
• Proprietor and Chief Consultant REVTANK
• Online Sales & Marketing and Revenue Manager Sens
Hotel & Spa, Bali
• General Manager Sapulidi Resort & Spa, Bali
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 Training Background

Product
•Better vision in Digital era
•Opportunity Vast and Fast
•Raise Brand Awareness and
increase sale
•Market behavior is changing
•Marketing Strategies are changing
•Guest Experiences journey are
changing
 Training Background

Human Resources
•Business model are changing but
staff habit are not.
•Lack of e-commerce specialists
•Increasing E-commerce specialist
demand from Hospitality Industry
•Need to update learning module
and content in conjunction to follow
market trend
Pre-Session Online Test

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Pre-Session Online Test…

1. Connect to Wifi from your

smartphone or laptop
2. Click on the link … sent to your
WA Group OR scan the QR
Code using your QR and
Barcode Scanner.
3. Answer the questions
accordingly in 20 minutes.

Pag
e9
 Did you know???
 60% - 70% Business in Hotel made thru E-commerce

 OTA made 45% of its bookings from Mobile and … growing

 Hotels have no choice to train E-commerce Specialist within the hotel due to
limited manpower out of hotels

 Remuneration and Career Path for E-commerce Specialist in the Hospitality

Industry are very promising

 Thus, there are lots of opportunities for Tourism Schools and graduates to shine in
the near future

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User Experiences Journey

Marketing
Dream
●

●
Sales

Reservation
Book
●

Booking Engine
●

Stay ●
Operational

Share ●
Guest
Welcome to …

Page 12
 E-Commerce Training in
Hospitality and Tourism Industry
for TVET Teachers in
South East Asia
Application of Ecommerce in the hospitality
industry and the impact on hotel room
revenues
The topics that will be covered during this 3 Days Training...

1 An Introduction to E-commerce

E-commerce Roles in the Hospitality Industry

2
The Basics of Revenue Management

3 Digital Marketing: The Basics, Types and Its Roles in Revenue Strategy

Why Revenue Management and Digital Marketing Should Align

4

5
E-commerce:
Definition, Types, Features, Benefits, and Trends

Page 15
 The Objectives
By the end of this training, the participants will know and understand the
following:

• The definition, types, features, benefits and trends of E-commerce in

general and be able to explain them

• Why E-commerce is so important to the business nowadays especially

in the Hospitality Industry
 What is E-commerce

ye r
Bu Online Transaction
e r
e ll
1. Exchange of digitized information S
2. Technology-enabled transactions

3. Technology-mediated relationships

4. Intra- & inter-organizational activities

 E-Commerce Definition

Technology-enabled transactions and

technology mediated
exchanges of digitized information
between parties (individuals or organizations)
as
well as the electronically based intra-
organizational
or inter-organizational activities that facilitate
such
exchanges
E-commerce Definition in different era
E-Commerce in hospitality industry

Hotel
Website

Hotel
 E-Commerce in hospitality industry

 Online Transaction

 Wide online business

 Virtual and Electronic Marketplace

 Trade and Service Relationship

 E-Commerce in hospitality industry
E-commerce is commercial transactions conducted electronically on Internet. It
means basically any form of business transaction in which the parties interact
electronically rather than by physical exchanges or direct physical contact.

There is a wide range of online business activities such as online marketing,

social media management, hotel online bookings, etc.

E-commerce in the travel industry brings a similar idea. It focuses on the

virtual and electronic marketplace in connection with online sales.

Especially in the hospitality online business plays a significant role. The trade
and service relationship between the hotel and their guests and partners is
mainly based on sales made via the hotel’s website and the partner OTAs.

Source: X-hotels glossary

 E-Commerce in hospitality industry
Why is so important?
Digitized business era
Technology keep changing
Market behaviors are changing
Marketing strategies are
changing
 E-Commerce in hospitality industry

Why is so important?
Online worldwide
The lowest cost hotel-booking channel
Customer research through Internet
Social media and hotel reviews are as
strategy driven
The web is the preferred media source.

Source: The Moscow Times, Nov ‘18

Type of E-Commerce business models
Type of E-Commerce business models
Company sell Company sell
product to direct product to other
customer company
OTA
Event offer
B2G
A Company provide
Hotel Online services, goods or
Website
Business information to the
Type government

OLX etc
Job portal

Customer/individual Customer/individual sells

sell or serve the a product or service to
needs of company another person or
customer
 Features of E-Commerce

Information Density: e-
Ubiquity: The quality of commerce comprises a wide source
being available everywhere information

Global Connect: Personalization/Custo

e-commerce goes beyond traditional,
cultural and national boundaries
mization: e-commerce
technologies allow merchants to target
and allows companies to access
their marketing messages to a people
customers across the globe
based on their interests and past
purchase history

Interactivity: e- Social Networking: e-

commerce technology facilitate
commerce players have partnered with
two-way communication
social media networking sites to allow
between the merchant and
users to share content and to deploy the
consumer
company’s eMarketing system

Source: Marketing91.com
 E-Commerce Advantages and Disadvantages
Advantages:
 Operates 24/7 (browsing, buying,
and selling)
 No need for setting up a physical
outlet
 No geographic limitations
 Low operational costs due to low
overheads
 Wide range of products and
services
 Wide choice of payment options
(cash, credit card, debit card,
vouchers)
 Low operational costs allowing
company to earn higher margins
 Helps consumers compare
different products
Source: Marketing91.com
Page 28
Disadvantages:
- Lacks tangibility
- Scope of offering customer
service while purchasing is
low
- Susceptible to cyber attacks
- Low customer loyalty
- Highly competitive
- Low barriers to entry
- Customer data susceptible to
risk of theft
- Highly dependent on
technology and needs to be
continuously updated with
the latest web and CRM tools
- Cost sensitive
Any thoughts or
questions?

Page 29
E-commerce Impact on Hospitality Industry

Page 30
 The Objectives
By the end of this training, the participants will know and understand the following:

• Some key trends in the world of technology to the world of Travelers

• How E-commerce has changed the landscape of people doing business

• The trending in APAC and how Technology plays a crucial role in the
current business
 E-Commerce impact on Hospitality Industry
The Power of Technology
E-Commerce has brought revolutionary changes in tourism and hospitality
industry

Tourism as one of the biggest industries is a natural partner of Internet. It is a

major component of most economies and community-based tourism is steadily
increasing popularity.

Trade opportunities, reservations, tickets, transport, instantaneous information

about any place nearby are provided through hotels.

It monitors, evaluates, creates faster transactions, empowers the participating

communities, makes information interchangeable through organized and flexible
web services.

It builds up visions, motivates people to venture into far off destinations,

popularizes hotels, inns, and serviced apartments.
E-Commerce impact on Hospitality Industry

So what does the changes ?

• Brochure  Website content/e-brochure

• Yellow pages Meta Search

• Reservation  Booking Engine

• Magazine/postage  SEM
E-Commerce impact on Hospitality Industry

Database has the most important rules

3 Party database
rd

Traffi TRAFFIC REPORT c

c Sou raffi
rce Geo T
PMS database av i o r
Vie w e r b eh
 E-Commerce impact on Hospitality Industry
APAC Online Leisure / Unmanaged Business Travel and
OTA Gross Bookings (US$B), OTA Share of the Online
Travel Market (%), 2015 - 2019

Source: Phocuswright
 E-Commerce impact on Hospitality Industry

Share of Bookings by Share of Bookings by Device,

Environment, for travel players all travel players, excluding
with a booking app, worldwide apps, worldwide

33%
40% 35%

65%
27%
Mobile Web App Desktop

Mobile Web Desktop

Source: Criteo data, Worldwide, travel advertisers, apps incl, Q4 2017

Any thoughts or
questions?

Page 37
E-commerce in Hotel Organization Chart

Page 38
 The Objectives

By the end of this training, the participants will know and

understand the following:
• Not all hotels have E-commerce Specialist in their structure

• E-commerce Specialist is structured differently in various

hotels

• Some samples of job descriptions of Hotel E-commerce and

Digital Marketing Specialists

• How E-commerce Specialist blends together with Revenue

and Digital Marketing specialists to make Revenues for the
Hotel.
 E-Commerce in Hotel Organization Chart
General Manager

Same level

Executive
Committee /
Division Head

Hotel Manager

Dept. Head

Supervisor
Dir. of
Dir. of Dir. of
Dir. of Dir. of Revenu
Dir. of Sales & Dir. of Human
Financ Engine e
Rooms Market F&B Resour
e ering Manag
ing ces
ement

Page 40
 E-Commerce in Hotel Organization Chart

General Manager

Executive
Committee /
Division Head
Dir. of Human
Finan Front Exec.
Sales Chief F&B Resour
ce Office House Exec.
& Engin Mana ces
Contr Mana keepe Chef Manag
Dept. Head Marke eering ger
oller ger r er
ting
Supervisor

Page 41
 E-Commerce in Hotel Organization Chart

General Manager General / Resort / Resident / Hotel Manager

DOSM / DOS / SSM Sales & Marketing Manager

Page 42
SAMPLE OF JOB DESCRIPTIONS

Position / Title Marcom Executive

Position / Title e-Commerce Executive Report to
Job Summary
SSM/DOS/DOSM/GM

Report to SMM/DOS/DOSM
Job Summary Driving profitable growth of the online market segment, creating
consumer demand and loyalty through own website and third party
websites. Assisting sales department with online strategy and tactics.
Required Job Skill Able to execute online campaigns and monitor the performance of the
campaign to ensure good result
Strive to constantly website traffic and booking conversion for all
property website.
Stay abreast with current development and trend in Digital Marketing
and Marketing Technology
Establish local and international network ecommerce professional and
third parties.
Able to work independently and work under minimum supervision
Having a good relationship with local and international OTAs
Strive to find an opportunity for strategic partnership with OTAs
Able to digest data insight from OTA’s dashboard and give report to
hotel’s DOSM for corrective actions and strategies to increase
production
Familiar with myriads of promotions, campaigns, and ranking booster in
BOOK OTAs.
 Required Job Skill  Hotel domain. Cluster, global or chain experience will be an added
advantage
 Online distribution, digital advertising and e-commerce for hotels
 Digital advertising: Google Search Network, Display, Video & Bing
Ads; Exposure to Sojern, Affilired; TripAdvisor CPC & meta; and
Double-Click, DSP, RTB or programmatic advertising will be an added
advantage.
 Experience in Google Analytics and related tracking technologies
 Intermediate experience in setting up and executing end-to-end
digital marketing campaigns across different platforms
 Social Media advertising: Facebook ( pages and ads), Instagram,
Twitter, Linked In, Youtube, WeChat etc.
 Hotel booking engines: Intermediate experience. Exposure to Sabre
Synxis, Travel Click or other booking engines
 Rate shopping: Intermediate experience. Exposure to OTA insights,
Rategain or other rate shopping tool will be an added advantage
 Intermediate experience with website content management e.g.
Wordpress
 Experience in email marketing, campaign creation, database
segmentation and distribution
 Basic understanding of content marketing
 Basic graphic designing and video editing
 Basic HTML and CSS
 Familiarization of OTAs, Meta Search and Extranets. Having
experience of running special offers on OTAs will be an added
advantage
 Familiarization with wechat, webio, baidu and Chinese social media
platforms and advertising will be an added advantage
 Familiarization of payment processors, payment gateways and
payment solution provider implementation
 Intermediate skills in Microsoft Office including MS excel, MS word,
MS power point
 Ability to prioritize projects, time and project manage
 Fluent English. Knowledge on other languages will be an added
advantage
 Good research skills, analytical skills and attention to details

Page 43
 Revenue Management

E-Commerce in Hotel Organization Chart

E-Commerce

Digital Marketing

Job Coverage
Support System
Revenue
Manage
ment

Sales & Marketing E-

comm
erce

Digital
Marketing

Collaboration
- To succeed in today’s market, it is vital for these teams to work together in order to optimize revenue and demand, and
maximize the digital distribution opportunities.

- Revenue Management should let Marketing know asap if the demand is low

- When notice is given the Marketing team can create & optimize effective targeted campaign to encourage bookings

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 E-Commerce in Hotel Organization Chart

Revenue management VS S&M

Revenue Management

Sales & Marketing

Revenue management (RM) is the

Sales is the task of selling what we have
science and art of enhancing firm
and marketing is finding out what
Revenues while selling essentially
we don't have
The same amount of product
Any thoughts or
questions?

Page 46
Revenue Management: The Basics

Page 47
 The Objectives The Objectives

By the end of this training, the participants will know and understand the
following:

• The Big picture of Revenue Management as the base of getting maximum

Revenues

• Types of Segmentation and Cost of Distribution as the key factors in

effective Sales Marketing strategy

• Revenue Management / E-commerce cycle or how Sales & Marketing

strategies are prepared

• Revenue Management roles in making Revenue

• The measurement used in Hotel to measure the hotel performance

 What is Revenue Management

inventory nesting
control forecasting

market ART optimization

segmentation
AND
pricing
SCIENCE Strategy

et Yielding
d g
Bu
 What is Revenue Management

Art

Science
 What is Revenue Management

Revenue Management for Hotels is the ability to sell the

Right Room (Product)
to the
Right Customer
at the
Right Time or for the Right Duration
and at the
Right Price.
(And also via the Right Channel)

It is the ability to sell the fixed capacity of space as profitably as possible.

Revenue Management is long term strategic, takes all revenue with their
profitability into consideration, can sell low rates even in high demand period

Revenue Management is not only maximizing in high period demand, it helps

stimulating demand in low periods while avoiding pricing cannibalism.
Page 51
 Revenue Management Challenges

Internal:
- Guest Profiling “Learn more about our guests by gathering and mining Data”
- Human Resources
Hospitality era has change but people habit don’t
- The Demanding Customer
The Increase of “baby retire guest”, They want it now – and they want it right first time.

External:
- Competition
More supply than demand
- National and International Politic & Economic Issue
- Partner behavior
3rd party partners has more power to control the hotel.
-Social Media
Social Media is at the forefront of a revolution in customer engagement.
 Maximizing Revenue

“Maximize Revenue” can be broken down into three main activities:

 Pricing Strategy

Pricing is the process of determining the rates that will

ultimately define the product in the marketplace.

When establishing a pricing structure, there are three

factors to consider.
• The Customer
• The Property
• The Market
Revenue Management Anatomy
Topic Day 1 Review: What Did You Learn?