Over-heard at NoVacancy: tweets and chatter from No Vacancy hospitality conference 18 March 2010

Normally it is the end of the year that signals the conference season with TRAVELtech, WebInTravel and PhoCusWright following each other month by month starting in September (note - TRAVELtech is Aug 31 this year rather than usual Sept). But for the BOOT this year the season has started early with adtech, No Vacancy having just wrapped up and Eyefortravel TDS Asia coming up in Singapore on April 28 and 29.

Last week was my first year at No Vacancy. It is part of the same conference stable as Martin Kelly's SearchEngineRoom and TRAVELtech and is targeted at the hospitality industry - all channels - rather than being a purely online or technology conference. I (and others) tweeted our way through No Vacancy under the hashtag #novacancy. Not all of you are on twitter so here in this post are some of the top tweets and quotes I took away from No Vacancy. Here are the the most interesting tweets:

On the market general (Australian bias)

• 2009 hospitality market in Australia according to Dransfield."held up better than expected" "rates down 3%" "revpar down 8.2%". 2010 "good start, expect rate increases" but " lost 40% of capital globally" "another shock could come" They went on "Credit availability + bank conservatism means still shortage of capital" "has hit valuation "av hotel down 20% value"
• Travelclick" gds htl vol in 2009 46mm trans, to 2003 levels". Wonder how much corp bookg decline, how much OTA neg rate growth?

On Online Agents and Intermediaries

• Robbie Cook (Wotif CEO) said "60% of business is direct to site, then organic search, paid is a single digit % of the business". He went on to say that "Wotif saved $2.2mm in costs post travel.com.au business post acquisition."
• Yury Shar Hotelscombined said that "less than 10% of traffic comes from typing in URL direct" "59% of traffic affiliate. Paid 24%, rest organic search" Sam_Linder added in his tweet "@hotelscombined 2 mil visitors pm to 6 mil in last year. Affiliates is primary channel, 15,000 such as skyscanner in uk"
• Latest stats from stayz.com.au "22,400 properties, 270k newsletter subs, 160k bkings/ 650k nts in 2009 (+ 30%yoy)" also advertising revenue

On Hoteliers

• Starwood AsiaPac "2009 -2% in occupancy, -7% ADR for -9% RevPAR in Pacific" "online only channel to grow- branded faster than OTA"
• Starwood "2-3 years to get back to 2007 rate levels" to which robertkcole said "Sorry, Starwood's dreaming if they think it will only take 2-3 years for rates to return to 2007"
• Accor AsiaPac "Occ finished 2009 at 74%. Good but down from all time high in 2007" "price down 6%" revpar down 9%"
• Accor "Online up from 10% of sales in 2005 to 35% planned for 2010" "65% of online sales will be direct up from 50% in 2005"
• Accor "happy with 65% of online business being direct. Won't artificially cap 3rd party distribution or hold back inventory"

Other accom types

• 25-46% of bookings online at "freespirit" (a holiday park/caravan park company). If true for whole sector then parks online larger percentage than hotels

Steve Sherlock of Oodles: the search for funding and the deal with Wotif that almost happened

car rental search site Oodles is part meta-search, part travel agent and part loyal program deal search site. The classic meta-search part is the ability for consumers to search multiple sites in one go. The travel agent part is that Oodles collects commission on paid bookings (when customer pays car company) not on a per click meta-search basis. The interesting loyalty program part is that if you give your Airline or Car frequent flyer number to Oodles, then they will add to the search results specialist loyalty program deals. Means that a person who is both a Velocity frequent flyer (Virgin Blue), Qantas Frequent Flyer and Hertz Gold Club member will see an integrated display including special deals from Europcar (Virgin partner), Avis (Qantas) and Hertz as well as other deals from Thrifty. This is a great and - as far as I can tell - a unique offering in car rental and meta-search generally.

I was talking about Oodles today with Founder and MD Steve Sherlock. Steve and Oodles are in the middle of a search for a new round of funding. In a true web 2.0 fashion Steve is blogging his way through the experience in series of "diary of an entrepreneur raising capital" entries over at the anthill website. Included is a story about how Oodles was almost acquired by Australian online travel giant Wotif.com. It is an interesting series of diary notes and a recommended read.

I like the different angle that Oodles has taken from others. Allows consumers to see a display of a combination of inventory (loyalty program discounted and regular) that I have not seen on any other online travel site. Oodles already have the car rental traffic lead in Australia so appear to be executing well. The challenge for them is the constant start-up problem in Australia - finding the funding to continue to feed the growth.

Expedia trialling Wotif display format in Australia

Care of a tweet from Kristi Barrow I came across a hotel sort order and search display experiment by Expedia in Australia (expedia.com.au). Below is a screenshot of the new display trial.

As you can see it is a grid approach rather than the typical list and details approach. I am convinced this is only a test as I was only able to get these results in one of four searches I tried. Likely they are doing multi-variant (or A/B) testing here.

You may be wondering why Expedia would trial a new (and arguably less user friendly) display on their Australian site. The reason is because of the market power of Wotif - the largest seller of online hotels in Australia.

In case you have not looked at the Wotif site, they have a very different look and feel to a typical online hotel retailer. Instead of a list of hotels with a lead in room rate, they have a grid that shows all the hotels on the left side, dates at the top and then availability and price in the middle. In other words a dramatic increase in the amount of information shown to a consumer. The sacrifice being depth of hotel information, sort order management and date accuracy (ie a specific date range for a search). It is now standard in Australia but very different to other markets.

By standard I mean it has influenced other players. Local competitors such as needitnow (AOT group) checkin and quickbeds (Fight Centre) have followed suit with this layout. Clearly Expedia has also caught the Wotif bug and is interested in trialling this layout in Australia.

Thanks to Kristi for sending the story around.

Webjet to relaunch hotels with a GDS backed retail model. Three reasons why I don' think this is the best plan available

Webjet are having a great time selling domestic air in Australia. As we have discussed before their tech leadership in developing the Travel Services Aggregator back in 2004 enabled them to sell multi-carrier domestic air including low cost carriers before anyone else. Even though other sites now have similar functionality, Webjet continues to enjoy customer loyalty and growth (despite charging dramatically higher fees per booking).

The company has made a number of attempts at diversifying their
revenue with land product. In mid 2003 they launched Bookabed as a standalone hotel brand. In 2006 they revamped the product under the new name Lotsofhotels. Then in June 2008 they announced plans to take Lotsofhotels onto the eBay platform. Unfortunately none of these efforts have developed traction in a very competitive market.

In their recent results they announced the launch of new hotel product called "Stay and Pay" (Travel Weekly story here). This new product moves them away from merchant sales to the retail model (consumer pay at the hotel, Webjet collects commission from hotel). They are launching two twists on the retail models you see from big players like Booking.com and Venere. Firstly there is no negotiated inventory. The inventory is drawn from the publicly available rates distributed through a GDS feed from Travelport. Secondly there is a service fee of $10 per booking charged up front by Webjet.

I like the fact that Webjet are trying hotels again. Fees on air make up 97% of their operating revenue (just down from 98% last year). They need to have other revenue streams to compete with packaging experts Expedia and Zuji (Travelocity) and the Wotif group owned air intermediaries Travel.com.au and Lastminute.com.au (not to forget the Orbitz owned hotel only players HotelClub and RatesToGo) [disclosure]. That said there are three reasons why I don' think this is the best way to go about hotels for Webjet:

1. Webjet will struggle for Rate Parity: The GDS companies (Travelport included) have done an admirable job working with the Chains and some independent properties to secure rate parity through GDS distribution. By that I mean working with hotels to have the rates that are loaded in the GDS be on par with the negotiated rates provided to the OTAs. However the rates in the GDS are never cheaper and by charging a $10 booking fee, Webjet will end up with pricing that is almost always more expensive than any other channel. There will be a convenience factor for consumers but this will be at the margins compared to the consumers who will be turned away by the higher price on Webjet;
   
2. Webjet will not have access to important Inventory Types: Again the GDS companies have worked hard to expand the range of hotels and properties available. However there is still a bias towards chains and a bias towards geographies with a history of GDS distribution. This means Webjet will be missing important independent properties and have less coverage in the Asia Pacific, Latin American and Middle East regions than the negotiated hotel agencies and OTA competitors; and
   
3. Webjet will miss out of the the best Specials and Promos: In this "year of the deal", hoteliers are providing deals and promos the likes of which have not been seen since 9/11. Most of these come with conditions, specifically a range of cancellation options ranging up to non-refundable. The GDS is not able to support this functionality as well as the negotiated inventory providers. Means that many of the great deals (especially last minute ones) will not be in the feed accessed by Webjet.

I can understand why Webjet went down this route. It would be very expensive for them to build a hotel contracting team from scratch. Impossible in fact if they wanted to gain coverage outside of Australia. Therefore they need to work with partners to access inventory. However my recommendation would be to work with an inventory provider with negotiated rates rather than the GDS. [disclosure - I work for a company that provides negotiated hotel rates]. It will provide them with a fix to each of the issues above.

The new Stay and Pay product is due for beta-launch today (18 Aug 2009). Will put in a functionality review post later.

Update - make sure you check out the comments where Richard Noon (Webjet CEO) puts his side of the story

Update 2 - I thought of one more reason why this product won't give consumers as good an experience as a negotiated provider will. The room type description and hotel content on the GDS is not as clear or attractive as those from a negotiated provider. Here is an example of a room type for a Sydney hotel in a GDS " PREMIER ROOM CITY VIEW 1 QUEEN OR 2 SGLSNON SMOKING LCD TV HI SPEED INTERNET FOR A FEE".

PS - last year at TRAVELtech Webjet CEO Richard Noon gave his estimates of the turnover of the various Austrlaia online air intemediaries.

90 days is enough for Wotif for now

Back in January Wotif moved their booking window from 28 days to 90 days. Itself and extension of their original 14 day window. At the time Wotif said they were working toward launching a full 365 day back end. Now in a story from TravelToday (PDF will open on link) comes word that 90 days is enough. The quote attributed to Wotif Group CEO Robbie Cooke in the article is

"[Wotif if are] unlikely to launch the 12-month window in the next 12 months but would instead turn its attention to 'more exciting projects'"

More exciting could refer to the new air engine they have launched over at Lastminute.com.au (wholly owned by Wotif). Functionality soon to be expanded to the Wotif brand. Or it could mean that going 365 in the back end was very very hard to do. As I said back in January the current Wotif front end design does not support an easy migration to year round inventory. It would involve having to put in place new date based search functionality. I also imagine it was very hard to convince hotels to load a years worth of rates in the back end. Once you start looking beyond a few months hotels have to be much more careful with fair/event/seasons/peak period dates/ close outs etc it becomes very hard to ask hotels to manage the extranet without expensive inhouse database support.

On the extension to 90 days, Cooke is claiming a 7% uplift in sales (according to TravelToday)

GFC presure finally comes to WTF - analyst rates Wotif.com as "under perform"

Wotif Group (ASX:WTF) has been a stand out Australian stock for as long as anyone can remember. Well at least since March 2006 when it burst onto the market at a pre-float price of $2.00 but closing the first day at $3.32. Has been a roller coaster ride since then. The first two years was all up up up, topping out at just below $6 a share. Then early to mid 08 saw a slump back below $3 a share. Recently the stock has rallied with the rest of the market to be around the $4.50 range ($4.50 close yesterday). Throughout that time I have not seen an analyst say a bad word about the stock (despite a P/E ratio in the twenties).

Now today we have a different voice. Senior Analyst at LINWAR securities James Bales has just published a research note on Wotif called "Check Out Time". In that note he sets a target price of $3.70 - 18% less than the current value. I can't share the whole research note with you as that is something LINWAR reserves for the clients but I can share some of the top level conclusions that Bales used to support his rating of Under Perform. Here are some extracts from his conclusions

"WTF trades on a significant premium to our DCF valuation. It also trades on a premium to larger well-performed global online travel peers in an industry which rewards scale.


Industry estimates of Average Daily Rate (ADR) declines are approaching double digit levels worldwide. The decline may be more moderate in Australia but Wotif expected low single digit rate decline in 2H09. Intense rate pressure has meant hotel chains are seeking ways of discounting prices without impacting brand - OTA’s offer this capability.


It appears Asian destination markets are holding up well [for WTF]– eg: Thailand, Bali. Source markets such as China post-Olympics and Japan appear weaker. In these areas global giants have a significant advantage over WTF. WTF is trying to grow an Asian business with no local language capability and just one small existing market (AU/NZ) from which to draw clients."

That said, Bales still supports the profit estimates from Wotif. As he says

"NPAT guidance of at least $42m was in line with our forecasts. This is no surprise given US 1Q09 results from Online Travel Agents (OTA’s). Our forecasts are unchanged, anticipating strong growth in FY10."

I agree with James analysis, especially on international expansion. That said hard to be too negative about a company that just upped its full year forecast.

That do you think? Will there finally be pressure on Wotif coming or is $4.50 a share just fine thank you very much?

Cheapflights.com.au launches in Australia - but this is not meta-search as it should be

It is supposed to be interesting when an international online travel company launches in the land of the barbecuing shrimp. So here I am on staycation leave quietly reading my newsfeed and blog email address when I spot care of m-travel and an email from Steve Sherlock of Oodles that "Cheapflights have launched an Australian and New Zealand version of their site". I should be excited by an international launch in Australia but Cheapflights is not exciting for two reasons.

Firstly, as I said back in July 07 when the rumours first started of Cheapflights coming to town (where 2008 was the planned launch date), this market (online air in Australia) is already too crowded for a domestic market with 2/3 carriers. OTAs like Webjet, Travel.com.au (owned by Wotif), Flight Centre, Expedia, Zuji (Travelocity) and Bestflights and regional meta-search player Wego (part owned by News Corp) are fighting for scraps left over by the online air dominance of the major airline websites (Virgin-Blue, Qantas and the Qantas owned Jetsar). Granted those scraps are getting bigger and bigger but still this is not an easy market to enter. Secondly, the Cheapflights product is simply not good enough to be of value to the consumer.

For those that don't know, Cheapflights is a quasi meta-search company started in the UK way back in 1996. Even describing them as "quasi" is generous because to me the hallmark of a meta-search business is an integrated display of up to date results in one place. The UK version of Cheapflights has the integrated display but the results are not up to date. Have a look at this extract from a London to Paris search

Notice where it says "updated 9 minutes ago" next to the BA quote and "updated 2 days ago" for ebookers. Also have a look at the URL for the page

It is a static landing page - http://www.cheapflights.co.uk/flights/Paris/London/ - rather than a dynamically generated page based on the timings of my specific search. The results are not timely or up-to-date. I clicked on a few of the links and they ended up on either dead search pages or some other destination page where the results did not match the search terms. In short the UK version Cheapflights - the oldest and most established version - does not work on a stand alone basis nor meet the minimum criteria for a meta-search player.

The Australia version of Cheapflights is even worse. It may be just early days for the product but the AU version is many steps behind the UK product which itself is steps behind competitors Kayak and TripAdvisor.

To give them some due, meta-search in Australia is not easy. As I discussed here in a Webjet vs Wego post (another Steve Sherlock tip) it is has proven very difficult to facilitae multi-carrier domestic meta-search in Australia. Wego has tried a work around (again go back to this post for more) but Cheapflights are not even trying. Have a look at this shot below of Cheapflights.com.au

This is the results of a search of Sydney to Melbourne. Rather than being presented with a set of even un-integrated (or disintegrated if you prefer) results I am given four options, four different websites that I can click on. Each click generates a new pop up with search results from the named party. If I want to do what meta-search is supposed to be for - comparing multiple sites - I have to open all four sites and looked at the results one by one. In other words do exactly what we used to do before meta-search came along. In some other words, it adds no value to the standard surfing practices of a regular internet consumer. In some more blunt words, next to useless.

In truth I don't think even Cheapflights think of themselves internally as a meta-search company. They target more of their effort and energies in their Travelzoo style Hot Travel Deals newsletter. Am undecided if there is value here,

Either way I am not predicting success for this product. The product in its current form adds little to the market and the competitors have more money to spend on marketing.

Told you I would get tough again? Am I being too tough?

No Vacancy Conference Sydney March 19

MartinKelly of TravelTrends has been kind enough to offer me a media pass to attend the No Vacancy accommodation industry conference in Sydney on March 19. If you are going, look out for me in the back blogging away.

Speakers include Wotif CEO Robbie Cooke, HotelClub's head of central marketing Jon Wild, Adrian Currie of Booking.com and Agoda, Cyril Ranque of Expedia and Grant Colquhoun of Travelocity/Zuji (full list here).

Wotif to sponsor Canadian Football Team London City

How is this for a marketing first? An Australian based online travel company buys space on the shirts of a Canadian Football team named after an English city. Wotif.com have announced a sponsorship deal with London City football (Canadian team) that will include logos on the clothing and fan accommodation booking site (LondonCityAway). Not the first time we have discussed sports sponsorship in online trave here at the BOOT. Wotif as a company (up until recently) is not famous for pure brand spent marketing. If you'd ask me to bet on what would be the next brand spend announcment, then sponsoring a Canadian football team would have been a long way down on the list of items that would have got my wager. What do you think? Crazy for an online player to sponsor a football team?

Wotif.com launches 90 days of inventory on January 27

As I mentioned back in May, Wotif is planning to extend the window for booking of inventory from the current 28 days out to 365 days. An email is going round to hotels today announcing that as of January 27 the first step in that plan will be launched with the Wotif extranet beting extended to take inventory up to 90 days out. No word on what that will mean for changes to the search display. Currently consumers do not enter in dates to get search results. Instead they are present with a grid format showing inventory availability over a 14 day period with an option to click to the "next seven days". I assume that to cover 90 days worth of inventory Wotif will have to change this interface and add date search.

If I am right then there are some challenges ahead for Wotif during the roll out of this new functionality. It is one thing to change the back end and have to train hoteliers on an updated system. This is a painful but relatively manageable task. It is another to manage the impact on consumer behaviour of a dramatic change in the consumer booking process. As they say on CNN - only time will tell.

The BOOT is back for 2009 with 5 predictions for the online travel industry

The BOOT is back for 2009. Tanned (a little burnt), rested (though could do with another big sleep in) and ready for action (kind of). Inspired by the Travolution article "Predictions for 2009" I am going to open up the 2009 edition of the BOOT with my predictions for the travel industry. Here are my five predictions for 2009:

1. There are more airlines to go bust. In fact before the end of 2009 a big carrier will go bust or be taken over as a saving measure. Alitalia is a gimme so I wont count the impending Alitalia failure/restructure as a successful prediction. Another big carrier (or two) will fail or be bought in 2009. Update - if you want a list of all of the 21 airlines that died in 2008 check out this post over at cranky flyer;
2. Domestic travel growth will surprise us all. I am a noted optimist when it comes to the travel industry surviving shocks and set backs. People will still travel in 2009 - they will just go short. Consumers will look for domestic deals and shorter trips to enable them to enjoy the travel and breaks they want without the long-haul price tag;
3. Consolidation is not yet finished: In 2008 TripAdvisor bought everything in sight, Venere first bought Worldby then joined the extended TripAdvisor family by being acquired by Expedia, Microsoft bought Farecast, Priceline bought Agoda, Wotif bought AsiaWebDirect and Travel.com.au and more. The consolidation in the online travel industry will continue through 2009. There are too many bargains out there;
4. 2009 will not be the year of mobile for the travel industry: Every year since 2000 we have been talking about the mobile revolution in online travel. This year I rejoined that chorus of mobile revolution fan boys while at PhoCusWright in LA. With the Global Financial Crisis (I am told there is even an acronym for this - GFC) in full swing I think the larger players will pull back from their mobile plans and focus on core products, costs control and customer loyalty. Mobile will have to wait until 2010; and
   
5. The dinosaurs will screw up and come out of the GFC even weaker: The big offline players have been screwing up online for a long time now. The good ones have managed to avoid destruction due to the booming economy and the sale of complementary products (land, car, package and especially cruise). The boom is over and the pain is hitting. Just recently Flight Centre announced a likely 33% drop in profits for 2009. In the past I have given advice on how you would know that offline players like Flight Centre "get it" and are ready to execute online. The GFC actually provides a fantastic opportunity to "get it" and join the online travel revolution. Expectations for performance are low during a bust giving offline players time to shift focus and make investments in areas they have previously ignored online. But I think the offline players will miss this chance. Instead of emerging from the GFC with a stronger online focus they will dig even deeper into the offline hole and emerge even further behind the online industry leaders. As evidence of this see the recent interview from new Stella Travel (Australia's number 2 offline player) CEO Peter Lacaze where he confessed to being an online sceptic. [Disclosure - in the past I have consulted to Stella on their online strategy].

UPDATE - Prediction number 6 - the last minute model will come back. I called the last minute model as being on hiatus in May 2008. It will come back as hotels start to hurt during the GFC.

Stay tuned to see what I get wrong and right here. The BOOT is back for 2009.

thanks to Tokyo Boy on flickr for the photo

People Move: Former Travel.com.au CEO designate Chris Meehan joins mobile company Comtel

I reported back in April that Chris Meehan (Travel.com.au CEO designate) was leaving travel.com.au and lasminute.com.au shortly after the completion of the acquisition by Wotif.com of Travel.com.au. Just read a press release that he has joined Australian based mobile phone company ComTel. Here is the press release. Congrats to Chris.

Ever wanted to ask questions of PhoCusWright, Abacus, Wotif, Wego, T2 Impact, Expedia and Yahoo!?

Well now you can! I am co-moderating a panel on day one at the Web In Travel conference in Singapore (Oct 21-22) along with conference boss and industry commentator Siew Hoon Yeoh. The session is called "the WIT Challenge" (full programme here). Siew Hoon and I will be firing questions at a fantastic panel including the following:

• Ram Badrinathan, Senior Director, Research, PhoCusWright Inc;
• Brett Henry, Vice President, Agency Marketing, Abacus International;
• Robbie Cooke, CEO, Wotif;
• Martin Symes, CEO, Wego;
• Timothy O'Neil-Dunne, Managing Partner, T2 Impact; and
  
• Ken Mandel, Vice President & Managing Director, Yahoo! SEA.

Also expecting a representative from Expedia to be confirmed very soon.

Do you have any questions you would like to ask this great collection of industry insiders. Feel free to put your questions in the comment section of this post. I will take the best of the best with me to the conference. Include your name/company and I will mention you (if)when I read out the qustion.

TRAVELtech: Global Review proves what we all knew - Consumers are almost impossible to predict

At TRAVELtech we heard from Karen Grinter of Global Reviews - a company that undertakes usability surveys. She conducted a survey with 98 users on their web searching actions to search tests:

1. Find the cheapest flight from Melbourne to Perth from Tullamarine, arriving before midnight and with check-in

2. Find the cheapest hotel in Brisbane, 5 mins from Botanic Gardens, with a pool and for less than $400 for two nights.

Here is a quick summary of the results of the survey:

Search: 47% started with a search engine

• 32% used the search engine via an installed search bar;
• 37% entered in a brand name, a large proportion searched a full URL in Google. In effect treating it the means for using a browser;
  
• Of these 18% clicked on a paid advertisement - the rest clicked on organic listings; and
  
• 0% (yes ZERO percent) looked at the second page.

Aggregaters: 44% went to an aggregater. In a specific Wotif Example Grinter noted that despite there being two places in the Wotif search results for the consumer to view a map. Not a single clicked on that link. Instead they left the site and looked to Google Maps or Whereis and sometimes (but not always) returned to Wotif to book. Consumers simply did not see the map links despite what industry people would view and very prominent links.

Suppliers: 6% went direct to a supplier (in the first instance) but 45% of aggregater visitors (in the case of the air ticket) indicated they would normally go from the aggregater to the supplier to book to avoid paying booking fees and because they trusted the results more.

Themes

• All about the first page in SEO
• Air aggregaters and buying traffic and losing sales to suppliers
• Consumers continue to miss buttons and tabs that we think are clear and obvious
  

Last minute model is on hiatus - but is it dead? Wotif to go 365 days

This logo on the left is a relatively recent version of the Wotif.com logo. Two simple things in the logo - the name and the model. Clear indication of what Wotif is all about - "28 days of great deals". But here is a copy of the new logo that has justed started to appear. Can you spot the difference - and I am not referring to the change in colouring. Rumours have been running around for Australia for weeks now that Wotif is going to be abandoning its last mintue model and moving to have inventory available 365 days per year.
When Wotif first launched it was only 14 days out. Then in 2004 they extended to 28 days. Now a couple of months after entering into the full service business with the acquisition of Travel.com.au, Wotif is on the verge of abandoning a big tenet of its brand - last minute deals?

I have been thinking about this for the last few weeks and wondering if this is an indication of a wider trend that I have been watching. I had been noticing that Lastminute.com's hotel growth was coming from its secret hotels, not last minute purchases. I could not help but read about Booking.com's continued growth in Europe - the sense I get (no data to back it) is that there is nothing particularly last minute about this non-stop growth. Other players have been extending their booking windows also. Finally - despite softening in the US economy and high oil prices it is still boom time for hotels. With occupancy rates so high, hoteliers seem less and less interested in seeking help for last minute distribution. Bring these together and it looks like until we see another change industry dynamics there is at the very least a hiatus in the last minute model. But I am not convinced that the model is dead, another shift in demand (read continuing economic downturns) and hotels will look to last minute again and the distribution houses will be right there to pick it up. Meanwhile - look for the Wotif goes 365 press release very soon.

What do you think? Am I right in sensing a movement away from last minute distribution of hotels? If so do you agree that its just due to the economic environment or there a more fundamental shift here.

UPDATE - thanks to a reader that sent through an ASX filed presentation from Wotif. From 8 May this presentation is an update given to brokers. It includes on slides 9 and 31 commentary that 365 day inventory is "in development" and "coming". Also updates on travel.com.au and AsiaWebDirect. You can find a copy here

CEO Chris Meehan leaves Travel.com.au post Wotif Acquisition

Avid readers will be aware of the battle between Webjet.com.au, AOT and Wotif for ownership of Travel.com.au (operators of the Lastminute.com franchise in Australia and New Zealand). This battle had Webjet in the early lead only for Wotif to claim a late victory based on a bigger cheque book. AOT walked away smiling, with a nice little capital gain. The deal formally closed on 1 Feb - you can read the full back story here.

News has been beginning to drip out on integration plans post Wotif owning Travel.com.au and Lastminute.com.au. The latest piece is that Travel.com.au CEO Chris Meehan will be leaving the business this month. Chris was caught in a very unfortunate piece of timing. On August 30 2007 Chris was annointed as the successor CEO to Adam Johnston at Travel.com.au. Just seven days later the Webjet offer hit the news wires and the roller coast ride to Wotif ownership started. It was always going to be the case that a merged/acquired Travel.com.au was not going to need a stand alone CEO so just days after be anointed as the new boss, Chris was sitting on a job that was destined to disappear. Tough timing. Am sure after a quick break we will see Chris back in the online world quickly.

Wotif guilty of "recreational killing"

We have already discussed Wotif.com's entry into the traditional marketing world with TV (and also bus stop) advertising. I ran one of their commercials recently - the one featuring a creepy child/doll/horror movie motif. Here is a video of the second commercial - a "squid eating competition" (see video below). I raise it because Wotif have caused a stir with this ad and are getting into some problems with it.



Wotif has been cited by Advertising Standards Bureau (ASB) in Australia over this commercial. This is the body in charge of ensuring that Australian advertising meets the legislative and industry standards. The ASB have been hit with complaints from viewers that the squid ad (according to B&T Magazine) .

“This is a graphic ad featuring a sadistic act, akin to biting the head off a budgie. It is gross cruelty presented as humour.”... “physically disgusting-cruelty to animals –morally repugnant.”

In the end the ASB ruled that the advertisement represented "recreational killing" and Wotif and its agency Leo Bennett will be forced to go back and rewrite portions of it. What do you think - funny ad or cruel and unusual punishment for cephalopods?

HotelClub.com in-flight TV commercial

Last week I put up the Wotif.com Australian Television commercial appearing on local free to air TV. Here is the HotelClub.com ad that has just started to air on in flight TV for a number of Asian Pacific carriers.



In the comments let us know which you think is better...

Disclosure - my linkedin profile is available for all to see - including role at HotelClub

Wotif.com - first time using traditional marketing

First for Wotif.com (lastminute accom provider in AU & NZ) - a TV ad.

Acquisitions now traditional advertising - is organic growth slowing?

Another version of the ad here

501 not out

Time has passed and the posts keep flowing. Time for my "not out series" - a regular summary of the last 100 posts that I first started with 101 not out and continued with 201 , 301
and 401.

Just like the 401 update it has been deals, deals, deals that has dominated the last 100 BOOT rants:

• Wotif evenutally managed to by Travel.com.au/Lastminute.com.au despite a fight from Webjet and a cunning move from AOT. Followed up almost immediately buying Asia Web Direct;
• TripAdvisor launched a new version and continued its targeted site buying spree with HolidayWatchdog;
• TravelCLICK was sold to Genstar and the BOOT called it first;
• The Asian acquisition bonanza continued as Priceline returned to the market though an acquisition of Agoda, ;
• Sidestep disappeared in a flood of newly raised Kayak cash; and
  
• Venere bought Worldby.
  

Cash flowed into online travel:

• Fastbooking took Euro35mm;
  
• Worktopia grabbed $5mm;
  
• Bezurk got "an undisclosed sum" from News;
  

I spent some interesting times on the phone doing start up interviews with:

• Yen Lee of Kango;
  
• Gregg Brockway of TripIt;
  
• Martin Symes of Bezurk; and
• Kellie Pelletier of Kayak.

In the weird world of quirky news:

• bags fell from the sky;
  
• The president of Sri Lanka got bumped and was not happy about it;
  
• Man fired dog and bragged about it; and
  
• nobody, I repeat nobody is doing anything naughty naughty in the new Singapore Airlines double bed suites.

Oh and Qantas turned from being the flying Kangaroo to the thieving Rat.

But I saved my most angriest post for number 400 - the last in this seasons. When the new Australian government said they were doing me a favour by continuing to allow Qantas to over charge me on flights to America.

If you're still reading then I'm still writing.