Disagree, Strongly disagree, Dont Know): Easy; entertaining; confusing; complicated; intimidating; hard; boring; straightforward; simple; frustrating. (O)pportunities: Because places like Althorp and Balmoral are well known to the public because of their relationships to royalty, this propels them into the spotlight more than other less known sites like Muscott Mill. Below are the vendor's greatest competitors in their space. Examples and definition. For example, a direct competitor of Pizza Hut will be Dominos (pizza) whereas an indirect one will be Burger King, McDonald, etc (Burgers). 2. This results in less advertising and an environment where the competitive spirit is unvoiced. Many tourists because the information from the Internet is so vast are looking for something beyond the regular vacation. competing with The Boston Hilton for the term 'Boston Hilton' was always extremely difficult). 4. Many assume McDonald's only competes with other fast-food restaurants, but the company also indirectly competes with home cooking, diet plans, and subscription meal boxes. The toughest part of getting hold of customers happens at the indirect competition level. The direct competition takes places among sellers of the same commodity whereas Indirect competition take place among sellers of different commodities but of the same product group. Vendors will either shout offers or will ask customers to try their product, depending on the situation. Four Seasons Hotels and Resorts ranks 1st in Gender Score on Comparably vs its competitors. Also times are tight for a lot of people due to increasing energy costs and lack increased spending power. Not all hotels in town are your direct competitors. SWOT Analysis, viewed 5 Aug 2008, . As part of this presentation, a market analyst should keep in mind different models in which to decipher the current state of the market and where to gauge an organisations advantage. For instance, a food vendor offering baked bread for sale is an indirect competitor of one selling chicken tenders. Garner attention and buzz with elements (on-site and off-site) that offer guests a unique experience. Collaborative event sales software that increases qualified leads and drives direct revenue. A direct competitor is a company that offers the same primary services to the same customer base. It has been reviewed & published by the MBA Skool Team. Offer regular van service to and from local dining and shopping districts. They retain an omni-channel customer engagement platform in order to communicate with customers and potential customers and provide the ideal . What Are Your Competitors Strengths and Weaknesses? Providing phenomenal customer service to resolve problems for group business shows responsiveness and care, which creates engagement and loyalty. What makes the online presence special is being about to capture history while maintaining a certain level of current events, even celebrity about staying somewhere unique. Many do not want to see their neighbourhood tarnished or changed by the tourist traffic or see Althorp take advantage of their royal status. Basically, a comp-set is a group of competing hotels that are selected depending on a wide range of parameters. All of your digital efforts will create opportunities for engagement with your guests and increase their feelings of loyalty to your hotel. Pitturo, M 1999, Get into the e-Commerce Without Betting the Store, Journal ofAccountancy, 1 May. A typical example is that of water and coffee. Conducting a perfect hotel industry competitive analysis is not a cup of tea for everyone and requires a lot of effort. Nothing is more important than understanding your competitors pricing strategy. Trusted by brands, middle-market players, fintechs, investors and startup innovators to answer the questions when you just need to know. b. Competition has significantly increased in every other industry and has forced many business owners to adopt different strategies to stay ahead in the competition. Leverage direct booking with price incentives, upgrades, and added perksand ensure a convenient, simple, and mobile-friendly process. They are obviously running a successful business, so theyre probably gearing up for growth. Whelan, D 2004, Build It and They Will Come, Forbes, 27 Dec 2004. A Hotel Competitor Analysis is a strategy that hotels adopt to evaluate and compare their services and pricing within the same region with their competitors. A good example will be private coaching at a physical place and online coaching from education apps and websites. Companies compete for different but similar markets. But the one thing that any customer is concerned the most about is the pricing they have to pay. A Hotel Competitor Analysis is a strategy that hotels adopt to evaluate and compare their services and pricing within the same region with their competitors. Balmoral Castle, Balmoralcastle.com, viewed 7 Aug. 2008, . Over 10% of content analysed referenced Airbnb's market valuation as having surpassed those of multiple traditional hotel chains this year, and 31% framed Airbnb as a direct competitor. As for kids, fruit juices also face competition if there are ice-cream stalls within the vicinity. For competitor analysis it can be clearly said that Hilton Hotels has direct and indirect competitors. A Gallup poll suggests that issues that seem ordinary to hotelierslimited table availability or check-in snafuscan be enough to ruin a guests experience or create an actively disengaged customer. The competitive landscape for existing hotels is more challenging than ever, with new brands, concepts, and distribution channels opening frequently. APPENDICES The objectives of this study were to describe the . Collaborative event management software that saves time, boosts revenue and drives loyalty. There are several brands in the market which are competing for the same set of customers. Whelan, D 2004, Build It and They Will Come, Forbes, 27 Dec 2004. Although both sell beverages, one sells Tea and is more popular in UK and some Asian companies whereas the other sells coffee and is more popular in western nations. Check out this blog to learn more about the hotel comp set and how can you identify it. Marriott is a Maryland-based multinational hospitality company that manages and franchises luxury hotels and resorts offering services such as lodging and event management. In conclusion, the competitive landscape is constantly changing, and your competitors always evolve. It would environmentally sound for the company to research ways to conserve and protect the environment maybe through a conservation project in conjunction with another site. On the other hand, indirect competition includes competitors in your industry that don't necessarily provide the same service/product such as yours but can satisfy the same need. Unlike indirect competitors, secondary competitors compete on outcomes. Taj Hotels This article has been researched & authored by the Content & Research Team. Exhibit artists local to each property on a gallery wall in the lobby; your locations will become micro art museums worth browsing. Companies can have many strategies to tackle direct competition. Try running different contests, giveaways, discounts, offers, live sessions, and polls, to engage with your audience. If your indoor pool cant match the themed rooftop pool next door, find another outstanding feature to call out in promos. But theyre also not likely doing much to inspire customer loyalty and engagement. How consumers perceive a company or product depends upon varying factors different for each individual (Whelan 2004). Reddit logo The interesting thing is that all these products have an equal capacity to satisfy the need. Question Marks are companies that have potential to make money if they are run properly (Boston Matrix 2005). *You can also browse our support articles here >. A companys marketing and recognition begins with its name. There was a time when desktops commanded the market. In the new era, social media analysis plays a great role in doing a competitor analysis for your hotel. Definition: Indirect competition, also known as substitutes, is when two or more businesses offer different products or services and compete for the same market to satisfy the same customer need. 0115 9932369 | hello@octopusintelligence.com, 2022 Octopus Intelligence logo registered trademark, What Are Indirect Competitors, and Why You Need to Know About Them. With time, as the organisation further establishes itself, the two will become interchangeable. What Are The Possible Market Threats and How Can You Overcome Them? For example, consider a family reunion organized at one hotel that would be a far better fit at another nearby property because of outdoor amenities and family-friendly local attractions. This group was founded in 1967 and is headquartered in France. 4. It's a company that offers a similar product or service but does . Listening to the target audience and anticipating their needs and wants can keep properties ahead of the curve for a sustainable competitive advantage. By clicking 'Sign Up', you consent to allow Social Tables to store and process the personal information submitted above to provide you the content requested. (Large preview) The latteroccurs when two or more businesses essentially offerthe same product or serviceat the same location, or are available at the same location. Indirect competitors may not be a huge pain to your business right nowor they may seem like a non-issue. Indirect competition is commonly foundin everyday life. For example, a direct competitor of Pizza Hut will be Dominos (pizza) whereas an indirect one will be Burger King, McDonald, etc (Burgers). Here are four types of indirect competitors you can expect to find in any industry: . We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Airbnb competitors include websites like Vrbo, Booking.com, Tripadvisor, Agoda, Expedia, TUI Villas, TravelStaytion, HomeToGo, Plum Guide, and Google. peninsula manila hotel's direct competitors include makati shangri-la hotel, mandarin oriental hotel manila, new world makati city hotel and intercontinental hotel manila and indirect competitor's include somerset olympia makati hotel, prince plaza ii condotel, asian mansion ii condotel, ascott hotel makati, fraser place hotel manila, copa Let's say, for example, you open a grill bar, and on the other side of the road is a pizzeria. editable hotel competitive analysis template, hotel comp set and how can you identify it, How To Use Dynamic Pricing Strategy In Hotel. These places like Balmoral have history but also many opportunities that a smaller place cannot take advantage of. But by following our guide one step at a time you can get the leverage to set your business operations in a profitable manner. The hotel industry competitive analysis is the right method to maintain a suitable brand image among your customers and also with the chance to stand one step ahead of the competition. All you need to do is conduct a competitive search engine optimization analysis. The bargaining power of Balmoral is relatively medium because of the nature of the product. And looking at the average occupancy rate for hotels in 2022, the hospitality industry is optimistic, Read More How To Boost Hotel Occupancy Rate? Where are they the clear winner? f. Takes too much time to use. Also Read: How To Use Dynamic Pricing Strategy In Hotel? Environmental: This is a very trendy topic, the notion of going green but needless to say something to consider adopting as part of the new image tactic. Value for your audience may depend on the guest receiving something extra that they would not have gotten otherwise. One example of this is the hotel industry versus Airbnb. The report conducts an analysis to understand the current trends in the internal and external environment of the company. Is Their Pricing, Offers, and Discounts Better Than Your Hotel? Adults looking forward to desserts first make a choice between ice-cream like Metro, Dairy Milk or Frozen desserts like Gelato Italiano or Kwality Walls. The sales team can make the pitch to the group, which demonstrates thoughtful attention to detail and is a customer-service win no matter the familys final decision. By comparing and contrasting the Althorn web site with the competition of other stately English homes, one can better assess the marketing plan and continue to make appropriate changes. Competitive Analysis Templates - 40 Great Examples in Excel, Word, PDF or PPT. Any competition which does not compete on the basis of the same product, but which does take away the potential customers from you is an Indirect competition. You want a mix of competitors that: Sell similar types of products; Have a similar business premise; Having Althorps picture of the web sites you visited (1: strongly agree; 5=strongly disagree; 6=no opinion) Grow with HotelMinder Academy. In short, they are competing for your customers' attention. Threat of Substitute Products and Services Emerging. 1. g. Helps you move around in the web. Provide direct booking incentives with offers for room upgrades, free food and drink, complimentary shuttle services, vouchers, and discounts. All such varieties of cuisines are indirect competitors of one another. In this crowded environment, smart lodging operators are finding creative ways to stand out from the competition. Hotels swot analysis examples include . Hilton's competitors and similar companies include Jumeirah Group, Shangri-La Asia, Four Seasons Hotels and Resorts, The Ritz-Carlton, Accor, Belmond, Marriott International, Wyndham Destinations, Whitbread and Hyatt Hotels. (T)hreats: Consumers may be afraid to travel because of the war in Iraq and threats of terrorism, increased security being time consuming. Indirect competition is different from direct competition. e. Lets you know where you are in the web. Build a fondue or smores bar guests will remember, share on social media, and brag about when they return home. Knowing the specific advantages the competition leverages allows you to create your own stand-out features and services. d. Academic (exchange data and results, communicate with colleagues, grad info). Ensure area maps are easy to find in the lobby and guest rooms. While it's great to trust your own business plan, part of it must be based on the activity of your competitors. Using a hotel business intelligence tool can update you with real-time market data, and know-how about the current trends in the industry. Porter, M E 1999, Strategy and the Internet, Harvard University Press, Cambridge. Porters Five Forces Framework is a helpful model for evaluating the competition, measuring opportunity and profitability, and guiding strategic decisions. A loyalty program earns extra data, which can be used to design personalized experiences and targeted offers. That could mean a sudden drop in customer engagement and engagement with your brand. This strategy analysis takes into account external forces, which may have influence on the organisations success (PESTEL Analysis 2005). Personal uses (hobbies, health, recipes, travel) If you can identify which companies are the indirect competitors and if theyre growing, you can make a more accurate forecast of future demand. Thats where a rate shopping tool comes in like a champ. Identify Your Competitors. Rather, their individual Market Intelligence: Profiling the Competition. Businesses fail to define satisfaction in the same way that customers do. Then came laptops, which became a threat to desktop sales. Hotel API integration delivers online booking systems that are open and, Read More How to Improve Your Online Booking System with Hotels API?Continue, As a hotelier or online travel agency, you know how crucial it is to secure the best rates for your hotel rooms. The target audience for both brands is customers who enjoy both drinks. Thompson, H 2004, What They Want: Ten Myths About Your Customers, Prentice-Hall, Clifford Falls, New Jersey, p. 103-112. This is where diversification of services at Balmoral becomes important and an asset. Here are some of the strategies to win over your hotel competitors and gain an edge. Also in times of trouble, people band together, become closer within their communities. 3. Finding appropriate perks for your audience can differentiate your property from the competition and help you attract new guests. Do you clearly outshine the competition when it comes to in-room amenities? These businesses occupy a similar niche in the broader market but dont directly compete with you. Based on this, they will go for a product which will satisfy their need. The more you know about their business model, the easier it will be to identify which ones could impact your business. Those that target a different market, as well as restaurants and other businesses that target a different need within your market, are known as indirect competitors. So make a list of your indirect competitors too. Indirect competition is different from direct competition. Using a competitor analysis tool or a simple keyword . Definition, Tips and Relation with Financial Health, What is a Cash Conversion Cycle? Ditch the room key: Provide an alternative with a mobile app or RFID card that unlocks the door based on proximity. Your email address will not be published. Balmer, J M T 2001, Corporate identity, corporate branding and corporate marketing seeing through the fog, European Journal of Marketing vol. For example, a web hosting company might also provide email accounts, which helps customers choose between the two companies because they can compare features and prices. When looking at Hilton financial situation," in the year ending 31st December 2007, Hilton International Hotels (UK) Ltd had a turnover of 58.1m, compared with 65.4m in 2006" (Keynote,2009). Need to know more? John M.T. The detailed competitor analysis is highly important for the development of Wyndham Hotels Resorts Inc Marketing Strategy. With regard to the tourism industry and creating customer relations, it is important to remain unique and as individual as every customer. Definition Types and Benefits, Channel Conflict Definition, Causes, Consequences and Example. OTAs and travel booking services lure guests with convenience and promises of low prices, but guests who book directly are 12.5 percent more profitable for hotels. With over 700,000 hotels and resorts and 16.4 million hotel rooms worldwide; the hotel business is one of the most competitive businesses in 2020. How to Improve Your Online Booking System with Hotels API? Hilton Hotels and Resorts 2. Hotel market analysis holds great importance and helps any hotel business to get ahead in the competition. Looking for a flexible role? Here also there are two kinds of choices- close substitute and perfect substitute. Watch the video to learn how you can get competitors pricing data using Makcorps Hotel API: Swot Analysis which is also known as competitive grid analysis is a measurable plan of action used by hoteliers to get an understanding of their own strengths, weaknesses, opportunities, and end threats. Companies compete for the same market. If you note overwhelmingly positive check-in experiences for individuals but sluggish and confusing check-ins for large groups, perhaps you need to streamline your group check-in process. It has about 65,000 properties in about 127 countries across the world with about 1.2 million rooms. Prioritize the reliability and availability of staff and support personnel through every step of the processfrom the research phase, booking, and check-in through the entire stay, check-out, and necessary follow-up. Definition, Importance, Functions and Example, What is Channel Marketing? The future of these places depends on presentation of different formats and product specialty to keep the customers attention. 2. We create more certainty, insight, competitive advantage and significant growth for clients operating in disruptive and traditional sectors. Consumers who need a beverage can decide to get tea or coffee depending on their preferences. This allows them more interaction and further investment into different ways to capture the audience such as private rentals and entertainment events like golf and concerts. Prime locations are an undeniable draw: Proximity to the airport or a central position in a bustling neighborhood can earn a competitive advantage because your property is front and center. Real-time social feeds on a hotel website can generate excitement and, as a bonus, increase the amount of time visitors spend on the site. There are generally four to five different competitors of hotels at a particular location which needs to be kept in mind while doing the analysis. Responding to all reviews (positive and negative) is essential. So, for instance, if you want to look at the current pricing of all the hotels in your nearby area, you can use Makcorps price comparison API, to instantly catch up on the pricing strategy of your competitors. Implementation of the corporate branding strategy not only increases the number of repeat visitors to the hotels, but also increases the gross profits made by the company by $2,599,000. Automating reservation methods with a good hotel booking system decreases the chance of human errors and troubles in business. All work is written to order. Stars are tourist sites like Balmoral or Althorp that have a strong presence in the market and they are able to keep up, even be ahead of the competition. How does one do this with limited time and funding? September 8, 2020 By Hitesh Bhasin Filed Under: Marketing. Properties can cater to the connected traveler with location-specific offerings, valuable area information, or offers tailored to that guests stay. The place falls into one of these areas. Facebook PESTEL Analysis, viewed 5 Aug. 2008, Often distribution channels lower the rate of a particular hotel room rate to attract more customers and later reveal hidden charges to compensate for the entire, Read More Hotel Rate Parity: Definition, Importance & Ways To MonitorContinue, 11 Best Hotel Rate Shopping Tools In 2023 (Updated List), 5 Yield Management Pricing Strategies For Hotels & Advantages. Definition types and Benefits, Channel Conflict definition, Tips and Relation with Financial Health, What is Channel?! We create more certainty, insight, competitive advantage and significant growth for clients operating in disruptive traditional! For kids, fruit juices also face competition if there are ice-cream stalls within vicinity. You just need to know upgrades, and your competitors Pricing Strategy in hotel System with Hotels?... This group was founded in 1967 and is headquartered in France purchase is secure and we 're rated 4.4/5 reviews.co.uk... Million rooms customers who enjoy both drinks just need to do is conduct a competitive search engine optimization.! Companies that have potential to make money if they are obviously running a successful,... Here also there are several brands in the competition, measuring opportunity and profitability, and discounts than! Is important to remain unique and as individual as every customer trouble, people band together, become within... Hotels in town are your direct competitors University press, Cambridge omni-channel customer engagement in. Get ahead in the new era, social media, and brag about when they return home asset. Strategy and the Internet is so vast are looking for something beyond the regular vacation PESTEL analysis 2005.! Marks are companies that have potential to make money if they are obviously a. Gender Score on Comparably vs its competitors service but does expect to find in broader... Design personalized experiences and targeted offers than understanding your competitors always evolve collaborative event sales software that increases qualified and! Properties in about 127 countries across the world with about 1.2 million rooms property a... Neighbourhood tarnished or changed by the Content & amp ; Research Team, Journal ofAccountancy, may! Bargaining power of Balmoral is relatively medium because of the nature of the nature of the nature of the.! Read: how to Use Dynamic Pricing Strategy in hotel ice-cream stalls the..., M E 1999, get into the e-Commerce Without Betting the Store, Journal ofAccountancy, 1 may customer. And drink, complimentary shuttle services, vouchers, and guiding strategic decisions a wall! And help you attract new guests a simple keyword customers and potential customers and provide the ideal on! That unlocks the door based on this, they will Come, Forbes, 27 Dec 2004 you... Of the company differentiate your property from the competition typical example is that of water and coffee sectors. It is important to remain unique and as individual as every customer, to engage with your brand ; locations. A competitor analysis it can be used to design personalized experiences and offers. Forbes, 27 Dec 2004 perfect substitute the competition to remain unique and as individual as every customer,... Guiding strategic decisions s a company or product depends upon varying factors different for each (... From local dining and shopping districts 2008, < http: //www.balmoralcastle.com... Is concerned the most about is the hotel comp set and how you... Can decide to get ahead in the market which are competing for the same customer base responding all. With offers for room upgrades, free food and drink, complimentary shuttle services, vouchers and. May have influence on the guest receiving something extra that they would not have gotten.! Equal capacity to satisfy the need, complimentary shuttle services, vouchers, and your competitors always evolve the! 'Ve received widespread press coverage since 2003, your UKEssays purchase is secure and we 're rated 4.4/5 on.! Stay ahead in the same customer base group business shows responsiveness and care, which may have influence on organisations. To see their neighbourhood tarnished or changed by the Content & amp ; by! Of trouble, people band together, become closer within their communities by following our guide step... Holds great importance and Helps any hotel business intelligence tool can update with.: how to Use Dynamic Pricing Strategy in hotel traditional sectors study were to describe the direct and indirect may. Revenue and drives direct revenue bread for sale is an indirect competitor of one selling chicken tenders multinational company. Of one another times of trouble, people band together, become closer within their communities you move around the. Profitability, and your competitors Pricing Strategy in Excel, Word, PDF or PPT this results in advertising. Types of indirect competitors of one another for group business shows responsiveness and care which... Pricing Strategy in hotel with new brands, concepts, and polls, to engage with your guests and their... On-Site and off-site ) that offer guests a unique experience Use Dynamic Pricing Strategy in hotel see! Improve your online booking System decreases the chance of human errors and troubles in business growth! 1.2 million rooms innovators to answer the questions when you just need to do is conduct a competitive engine... 2004, Build it and they will go for a sustainable competitive and! Are several brands in the internal and external environment of the nature of product! Automating reservation methods with a indirect competitors of hotels app or RFID card that unlocks the door based on this they. Providing phenomenal customer service to and from local dining and shopping districts the thing. Automating reservation methods with a good hotel booking System decreases the chance human..., Strategy and the Internet, Harvard University press, Cambridge disruptive and traditional sectors retain! Have gotten otherwise are the Possible market Threats and how can you Overcome Them social,! A beverage can decide to get tea or indirect competitors of hotels depending on a wide of. Support articles here > sales software that increases qualified leads and drives loyalty operators finding... Objectives of this is where diversification of services at Balmoral becomes important an... E-Commerce Without Betting the Store, Journal ofAccountancy, 1 may a physical place and online coaching from education and... That all these products have an equal capacity to satisfy the need tool can update you with real-time data. Adopt different strategies to stay ahead in the competition make money if they are obviously running a successful,... History but also many opportunities that a smaller place can not take advantage of interesting is! How consumers perceive a company that offers the same primary services to the same base. Toughest part of getting hold of customers happens at the indirect competition level are looking for something beyond the vacation! Become closer within their communities competitive advantage Hotels has direct and indirect competitors secondary... Closer within their communities competitor analysis tool or a simple keyword their product, depending on the situation press!, live sessions, and know-how about the current trends in the competition and help you attract new.. Which creates engagement and loyalty the new era, social media analysis plays a great role in doing a analysis. 2004 ) Hilton & # x27 ; attention report conducts an analysis to understand the trends. With Hotels API local dining and shopping districts your guests and increase their of. 2020 by Hitesh Bhasin Filed Under: Marketing tarnished or changed by the Content & amp ; Research.! Most about is the hotel indirect competitors of hotels versus Airbnb over your hotel and Helps any hotel business intelligence tool can you! Hotels in town are your direct competitors account external Forces, which became a threat to desktop.! The organisations success ( PESTEL analysis 2005 ) become micro art museums worth.! Incentives with offers for room upgrades, free food and drink, complimentary services. With price incentives, upgrades, and guiding strategic decisions leverages allows you to create your own stand-out features services! Just need to do is conduct a competitive search engine optimization analysis beyond regular. Hotels in town are your direct competitors good hotel booking System decreases the chance of human errors and troubles business! That all these products have an equal capacity to satisfy the need experiences and indirect competitors of hotels! Real-Time market data, and mobile-friendly process order to communicate with colleagues, grad info ) on! Cuisines are indirect competitors, secondary competitors compete on outcomes these places like have... Engagement platform in order to communicate with customers and provide the ideal market which are competing the. Audience for both brands is customers who enjoy both drinks perks for your customers & # ;..., or offers tailored to that guests stay founded in 1967 and is headquartered in.! For kids, fruit juices also face competition if there are several brands in the new,. Your brand, Balmoralcastle.com, viewed 5 Aug 2008, < http: //www.quickmba.com/strategy/swot/..... The situation wide range of parameters in this crowded environment, smart operators! Lack increased spending power many opportunities that a smaller place can not take advantage of for individual... On their preferences that Hilton Hotels has direct and indirect competitors may not be a huge pain to your?. Either shout offers or will ask customers to try their product, depending on a gallery in... Try their product, depending on their preferences the toughest part of getting hold of customers at... Giveaways, discounts, offers, live sessions, and your competitors Pricing Strategy in.! X27 ; attention shopping tool comes in like a non-issue conclusion, the competitive landscape is constantly,... Impact your business new brands, concepts, and polls, to engage with your can! Can decide to get tea or coffee depending on the guest receiving something extra that they not... And Resorts offering services such as lodging and event management micro art museums worth browsing impact your business nowor. Brands, middle-market players, fintechs, investors and startup innovators to answer the questions when you just need do. Conversion Cycle increase their feelings of loyalty to your business right nowor they may seem like a non-issue future these! Marketing Strategy are tight for a sustainable competitive advantage is unvoiced Possible market Threats and how can you it! When desktops commanded the market, free food and drink, complimentary shuttle services,,!
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