Sep 13, 2011

JDVhotels.com a good example of 1,2,3 theory

What is 1,2,3 theory? / Why super 3 is the next logical movement after my own 1,2,3? / How to reverse 75% reservations OUT of my web  and 25% IN my web? / Why do hoteliers need a little bit of Touristology?
JDV is a good example of 1,2,3, theory. For starters...
1) The Demand: Discover / provoke customers’ needs. In our field that means to know what make people travel OR what need can be satisfied or better satisfied trough a travel (Are you familiar with Divorce Tourism?)
2) The supply: It can be a tourism package, a component of a possible package (Hotel, restaurant, sightseeing-walks, a place to meet someone related to travel motivation...) , a tourist destination... but in all the cases... it has to be transformed in a product / service customized to a specific segment.
3) Last but definitely not least (I always love this expression!!!) the chain of value that helps you  to communicate and commercialize your service because it adds value with services provided from external companies or organizations and it helps to get the trust of the customer: YOUR CUSTOMER!!!!
JDV had made a strong bet in creating MY OWN 1,2,3 (see graphic 1) and then the next logical movement is to become a super 3. This it was the case of Wyndham http://www.wyndham.com  first they specialized in businesswomen and then they create www.womenontheirway.com to sell to this segment other hotels and services in a change for a commission, of course!

For the moment they work effectively in create their own 1,2,3. They create a hotel base upon a magazine (for instance, Rolling Stones) in this way they get free publicity and sometimes a new investor and they focus this hotel to customer connected to the magazine’s lifestyle.  If you visit their website http://www.jdvhotels.com/  you will see that they try to focus on families, and on several segments they define with the information they get from their customers. Visit http://www.jdvhotels.com/matchmaker to get an idea about how they do that.
They decide long time ago that 75% of bookings trough central reservation systems with an average commission of 20% it wasn’t the good track and become the adventure to change this number, nowadays 75% of the reservations are made through their own website!
They are also one example of long tail theory, they not only appears in sites related to tourism but also with others related with lifestyle (www.demotivation.us;www.notengotele.com; www.youtube.com...). This is far away from what you can do with the long tail but is a hopeful beginning!!!
I’m sure that in the future they will try to explore the super 3 way. Any bets? The dices are rolling!
Anyway, Wyndham and JDVhotels are a wakeup call for all the lodging industry. It’s time to take control of your chain of value in order to get the trust of your customer, get information, transform it into knowledge in order to customize your services, improve your pricing strategies and get cheaper and more effective promotion and place.
As Chip Conley (the founder and CEO of Joie de vivre hotels) says in this video “Business has to want to change itself!” By the way I prefer Dale Carnegie over Daniel Goleman but this is just me!

If you are in a hurry and want to go straight to the point  see this one in order  to know something more specific about how he try to reverse the 75% Expedia  to 75% www.jdvhotels.com
Well... 1,2,3 theory, Long Tail, Business model and Psychology, a little bit of Web Engineering... Welcome to a Consiliant world http://en.wikipedia.org/wiki/Consilience!!!!
It’s a different world full of opportunities! Take them or they will become a threat as others use it to take control of your chain of value!
By the way, to do that you need... That’s right A GOOD TOURISTOLOGYST!!!!



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