indirect competitors of hotels

Wyndham Hotels & Resorts is a hotel franchising company. Brands successfully position their products in the minds of customers but in the swirl of the moment, indirect competitors steal the show. Many people have chosen to stay home or vacation close to home. If the firm's exact counterpart can win in direct competition, then that same competitor should also win more against the less direct competitors. Having the right price will make or break your business and even the slightest difference from your competitors can help you achieve the advantage in getting more bookings. 1. TUI is a Germany-based travel and tourism company that provides services such as hotel accommodation and flight and cruise ship booking for individuals and businesses. Competition has significantly increased in every other industry and has forced many business owners to adopt different strategies to stay ahead in the competition. Simply put, a competitor set is a group of similar hotels that are perceived as direct competitors. Below are the top 5 competitors of TripAdvisor: 1. Direct and indirect competitors In an indirect competition situation, the two competing businesses are indirect competitors. Collaborative event management software that saves time, boosts revenue and drives loyalty. No plagiarism, guaranteed! This results in less advertising and an environment where the competitive spirit is unvoiced. They both serve customers who want food even though they sell different products. Kotler P, 1999, Kotler on Marketing, Free Press, New York. In conclusion, the competitive landscape is constantly changing, and your competitors always evolve. There was a time when desktops commanded the market. Defining identity and therefore CRM becomes a challenge now especially as business practices change and shift to encompass all areas of focus and strategy. Balmer, J M T, Fukukawa, K & Gray E R 2001, The Nature and Management of Ethical Corporate Identity: Discussion Paper on Corporate Identity, Corporate Social Responsibility and Ethics, Bradford School of Management, England. A competitor analysis starts by understanding your competition in the nearby area and all the different amenities they are offering to attract more customers to their business. This is why hoteliers use different hotel rate shopping tools for creating outstanding yield management strategies. Balmers (2001) research writes of, identity was a pressing issue for many institutions and that the question of identity, or of what the organisation is or stands for, cuts across and unifies many different organisational goals and concerns (p. 250). Outdoorsy is another amazing Airbnb competitor and an alternative to running a vacation rental business without a property to rent. Exhibit artists local to each property on a gallery wall in the lobby; your locations will become micro art museums worth browsing. c. Slows down the computer too much. Select 7-10 competitors. Diagram events, wow attendees, and win clients with free planning tools. 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. Engage with planners via social media and travel website reviews to build relationships and increase brand loyalty. Here is an editable hotel competitive analysis template you can use for performing it. 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. Indirect competitors are companies that target the same customer demographics as another business. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! 4. Indirect competition often occurs between beverage brands. Yes, the first step in our list seems obvious, but you'd be . Despite the importance of competitor identification in the hotel industry, the process of identifying competitors remains unclear to industry practitioners. So make a list of your indirect competitors too. Value-conscious traveling sports teams will appreciate free breakfast, while corporate retreat executives may prefer luxury add-on excursions or experiences, such as a brewery tour with dinner and a tasting flight. Reddit logo Is Their Pricing, Offers, and Discounts Better Than Your Hotel? 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. Make sure the booking option is easy to spot, streamlined, and no more than a few steps from start to finish. 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. Trivago 2. Cuisines also fall into the trap of indirect competition. While travellers previously reached to hotels for their temporary lodging at a moderate-to-high price, Airbnb came into the scene offering home-shares that are not only less . They may write the same type of content as you and be competing for the same keywords. For example, a direct competitor of Pizza Hut will be Dominos (pizza) whereas an indirect one will be Burger King, McDonald, etc (Burgers). Yield management is one of the most accurate methods to not just only forecast your pricing and demands, but actually calculate the demand forecast based on the real-time data and deduce a suitable pricing strategy for the year around. Definition, Tips and Relation with Financial Health, What is a Cash Conversion Cycle? It's a company that offers a similar product or service but does . Indirect competition is a term that refers to the companies or publishers that don't sell or market the same products, but are in competition with your business digitally. That could mean a sudden increase in marketing spending, product development, or expansion that could directly impact your business. b. Indirect competitors may not be one of your biggest rivals right now, but they almost certainly will be someday. 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. Balmoral Castle, Balmoralcastle.com, viewed 7 Aug. 2008, . Definition, Formula and Usage, What is a Cash Budget? Hence, the sellers of these three products especially the laptops and notepads face severe indirect competition; thus putting consumers into a hard-to-decide situation. These niche locations like Balmorals will meet consumer demand of specific needs. A lot of indirectly competition takes place among these brand products and goods. 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. We Assess. As more hotels offer free Wi-Fi, there is an increased opportunity to engage with guests directly through digital content. Balmer, J M T 2001, Corporate identity, corporate branding and corporate marketing seeing through the fog, European Journal of Marketing vol. Indirect competitors: Your indirect competitors are businesses that sell the same products as you, but also operate in other areas. Marriott's Profile, Revenue and Employees. Definition, Importance, Functions and Example, What is Channel Marketing? WhatsApp logo. How do you rate Althorps web site overall ease of use? The challengers include online retailers (Expedia, Priceline), media companies (Google, Trivago, Kayak), hotel and lodging companies (Airbnb) and food delivery services (Deliveroo, Grubhub). 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 Offer a fast and streamlined valet service, so guests never feel stranded. Establish your property as the local expert for group activities: Integrate a digital itinerary builder on the website so guests can create a plan for where to go, what to see, and where to eatbefore they arrive. Nike and Adidas compete in athletic apparel. Whelan, D 2004, Build It and They Will Come, Forbes, 27 Dec 2004. Hotel market analysis holds great importance and helps any hotel business to get ahead in the competition. This means that in the future, these indirect competitors could be looking for new customers, and those customers could be coming from your business. 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). In this way, you can easily optimize your business functions accordingly to achieve a competitive advantage. If you want a burger, McDonald's and Burger King will both satisfy that job with the same outcome. a. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. When youre plotting your competitive landscape, it seems like there are a lot of market players to keep track of. Go above and beyond to provide an unforgettable experience, ensuring offerings apply across the portfolio to establish brand consistency guests can count on. h. Makes me feel like Im travelling throughout the web. Dont forget that merely copying your competitors would not give you much result. Finding appropriate perks for your audience can differentiate your property from the competition and help you attract new guests. Twitter logo First, indirect competition happens between a hot and a cold beverage. This rate-shopping solution for hotels offers a range of, Read More Benefits Of Hotel Rate Shopping Tool For Hotels & OTAsContinue, With the expansion of technology and the increase in the number of distribution channels, it has become a challenging task for hoteliers to maintain harmony in their pricing distribution. The chosen company is The Jumeirah Group and the selected hotel is Burj Al Arab, which is the only seven star hotel in the whole world. In order to form a strong customer base, it's important to understand your competitors and engage them effectively. To develop a robust content marketing strategy, a competitive analysis is crucial to make an impact and connect with your targeted audience. Gathering market research and intelligence on your direct and indirect competitors then becomes not just an effective strategy, but a necessity. Recently the houses name and intellectual property in the forms of trademarks and brand has been at the forefront, in constant view thanks to e-business. The general public may not know the things that might differentiate two indirect competitors, like between a handyman and a general contractor, for instance. So, begin the block to know more about the term. But, if the incentive doesnt align with the customers values, theres a missed opportunity for connection. TUI's primary competitors include BCD Travel, Thomas Cook Group, CWT and 13 more. Threat of Substitute Products and Services Emerging. For instance, a food vendor offering baked bread for sale is an indirect competitor of one selling chicken tenders. Follow social media feeds and blogs for competing hotels and see which of their offerings are performing well. The Free Press, New York. another group is the cold tea, cold coffee, a third group is fruit juices, lemonade and a fourth is a flavored water (though not as much as the other three). Keeping hotel occupancy rates at an optimum level helps hotel business owners to stay profitable in the long run. That may seem confusing and a bit silly but bear with us. Below, we've outlined four fundamental steps in conducting your own content marketing competitive analysis. Also, it gives them an insight into the different services, pricing, and other factors that their competitors offer. What Are The Possible Market Threats and How Can You Overcome Them? (1=very easy; 5=very difficult), 2. i. You might not be able to get precise details about both of these, but you can make educated inferences. And this could only be done when you have a thorough understanding of major competitors in the hotel industry and their offered services. 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. Guest experience is usually the best method to get actual information about your propertys image in the mind of the customers. Personal uses (hobbies, health, recipes, travel), c. Business (buy and sell, product info, banking). Where do you take the lead? A loyalty program earns extra data, which can be used to design personalized experiences and targeted offers. Clearly Explained!Continue, Online bookings earn around 63% of the tour and travel industrys revenue yearly. But your direct competitors are the companies trying to sell the same products and compete directly with you on price and features. editable hotel competitive analysis template, hotel comp set and how can you identify it, How To Use Dynamic Pricing Strategy In Hotel. The bargaining power of Balmoral is relatively medium because of the nature of the product. Many tourists because the information from the Internet is so vast are looking for something beyond the regular vacation. 35, 3/4, p. 248-291. Definition Indirect competition occurs when two or more companies offer two different products or services that can be substituted. It could also mean that your customers are solving the problem they came to you to solve, but theyre solving it with a different solution. Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter. 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. That might sound strange initially, but these types of rivals can significantly impact your business if left out of the competitive landscape analysis. Balmoral, while stoically regal also maintains a global image because of it being the Queens summer residence. How to Improve Your Online Booking System with Hotels API? There are several brands in the market which are competing for the same set of customers. Thus, it is essential that you constantly check your competitors and keep an eye on their promotional strategy. The purpose of this presentation was to demonstrate different market strategy models that allow one to analyse not only the particular industry but also the competition. They contrast with direct competitors, who not only target the same customer group, but also sell the same thing. Therefore, they are direct competitors. Here, the content may be the same, by the way of delivery is different and choosing this way requires a decision-making process in the consumers minds. Here also there are two kinds of choices- close substitute and perfect substitute. Companies compete for the same market. There are two kinds of competition in the markets- direct and indirect. So, these are the parameters to consider: Hotel size: Consider the number of rooms and room types of your competitor hotels. We're here to answer any questions you have about our services. Here are four types of indirect competitors you can expect to find in any industry: - Substitutes: These are the products that are similar to your product but not exactly the same. (S)ocial: Social forces at work externally could be a fear of flying or travel. An indirect competitor serves the same customer needs as another company but offers different products or services. They are obviously running a successful business, so theyre probably gearing up for growth. Conduct a swot analysis to get a deeper understanding of your business and also about your competitors to accordingly optimize your business strategy. Balmoral must remain at above industry standard while maintaining the sense of class found and that level of services. d. Academic (exchange data and results, communicate with colleagues, grad info). Here, the dairy product group faces indirect competition from jam and jelly products. (L)egal forces or changes in the laws that govern travel are constantly in issue. A good example will be private coaching at a physical place and online coaching from education apps and websites. Get your 100% original paper on any topic done While preventing problems in the first place may be regarded as a mark of success, there is a benefit in problem-solving. Clearly Explained! CRM software can also flag loyal customers and priority group engagements portfolio wide so staff can keep an extra eye on them to ensure satisfactionand save the day should issues arise. The report conducts an analysis to understand the current trends in the internal and external environment of the company. Thompson, H 2004, What They Want: Ten Myths About Your Customers, Prentice-Hall, Clifford Falls, New Jersey, p. 103-112. Try running different contests, giveaways, discounts, offers, live sessions, and polls, to engage with your audience. Peters, T 2003, Helping Small Firms Put the e in Trade, International Trade Forum,1 July. The web sites chosen for review with Althopr.com are as follows: (1) Balmoralcastle.com and (2) Muscottmillfarm.co.uk. However, you shouldn't spend all your time here. Indirect competitors describe businesses that offer different approaches to consumers to reach the same goal or satisfy the same need. No matter how good your marketing strategy is, but if you fail to identifying the right competitors you should be competing with can lead to disappointment. Keep An Eagles Eye On Your Competitors. Jaime Levy gives very good definitions of direct and indirect competitors in her book UX Strategy. big savings on homes, hotels, flights, car rentals, taxis, and attractions - build your perfect trip on any budget. Question Marks are companies that have potential to make money if they are run properly (Boston Matrix 2005). With time, as the organisation further establishes itself, the two will become interchangeable. But theyre also not likely doing much to inspire customer loyalty and engagement. Copyright 2022 Cvent Inc.All rights reserved. Hence, they too contribute to product branding by direct marketing of the product. To achieve an edge in the market, you must possess something different and useful to attract customer attention. Thats where a rate shopping tool comes in like a champ. Company Booking through the hotel website offers an opportunity for add-on services, too. Top 8 Amazon competitors 1. eBay. About TripAdvisor Paris, Marseille, Lyon, Belgique, Luxembourg, Europe. Seamlessly manage and optimize group sales performance across your entire portfolio. Both of these companies can attack their direct competitors. 4. Both you and your indirect competitors address the same customer need but offer different products or services. Indirect competitors are those that offer a different product, but with the same goal and consumer resources. Required fields are marked *. APPENDIX A Indirect competition is different from direct competition. Porter, M E 1985, Competitive Advantage: Creating and Sustaining Superior Performance. competing with The Boston Hilton for the term 'Boston Hilton' was always extremely difficult). Knowing the specific advantages the competition leverages allows you to create your own stand-out features and services. We offer a free no-obligation consultation. Read on to learn more about indirect competitors and why they matter so much in this industry. Both types of competitors can draw business from a company . The competitive landscape for existing hotels is more challenging than ever, with new brands, concepts, and distribution channels opening frequently. While on the other hand, strengths and weaknesses are the internal part of the organization, and threats and opportunities are the external factors that can be regulated and used to their advantage. The main competitors of Wyndham Hotels & Resorts include Choice Hotels International (CHH), Boyd Gaming (BYD), Melco Resorts & Entertainment (MLCO), PENN Entertainment (PENN), Red Rock Resorts (RRR), Caesars Entertainment (CZR), Wynn Resorts (WYNN), Travel + Leisure (TNL), Hyatt Hotels (H), and InterContinental Hotels Group (IHG). One example of this is the hotel industry versus Airbnb. Competitive analysis is about knowing one's competition. Hilton Worldwide is an American Company dealing in the provision of hotel and hospitality services. As with cold beverages, there are many indirect competitors. Porters Five Forces Framework is a helpful model for evaluating the competition, measuring opportunity and profitability, and guiding strategic decisions. Upgrade the morning coffee routine with in-room latte brewers in each hotel. Direct competition between companies is relatively easy to identify, but indirect competition can be more difficult. Indirect competitors are businesses in the same category that sell different products or services to solve the same problem. Far from accurate and 100% subjective but the sites I personally remember sticking out as the strongest competitors were Booking.com (internationally), KAYAK (domestically), and each hotels respective site (i.e. Because the business of tourism is greatly service oriented, it is of utmost importance that the companys name has integrity. But if you dont know what it is, exactly? Guests are looking for more in their stay than channels theyll never watch or Wi-Fi that crawls, especially with a speedy unlimited data plan in their back pocket. What is indirect competition? 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. How Do And Where Your Hotel Competitors Promote Their Hotel? There are four areas that divide the matrix so that a place like Muscott Mill Farm can be differentiated from other stately English homes or working historic monuments. Personal uses (hobbies, health, recipes, travel) 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. Benefits Of Hotel Rate Shopping Tool For Hotels & OTAs, Hotel Rate Parity: Definition, Importance & Ways To Monitor, Importance Of Hotel Competitive Analysis Data To Get Ahead. But by following our guide one step at a time you can get the leverage to set your business operations in a profitable manner. What Are Your Competitors Strengths and Weaknesses? Sustaining Superior performance, while stoically regal also maintains a global image of... And compete directly with you on price and features and that level of services will both that! Boston Matrix 2005 ) how to Improve your Online Booking System with hotels?... The competitive spirit is unvoiced to design personalized experiences and targeted offers easy to identify, you... Press, new York competition in the competition, measuring opportunity and profitability, and competitors! Another company but offers different products more about the term franchising company your biggest rivals now... Make money if they are obviously running a vacation rental business without a property rent... Are the top 5 competitors of TripAdvisor: 1 one example of this is hoteliers... Conducting your own stand-out features and services and example, What is a Cash Cycle. Use Dynamic Pricing strategy in hotel Makes me feel like Im travelling the... Like a champ sound strange initially, but they almost certainly will be someday approaches consumers! ; Resorts is a Cash Conversion Cycle theres a missed opportunity for add-on,. 5=Very difficult ), c. business ( buy and sell, product info, )! Or changes in the market, you shouldn & # x27 ; s primary competitors include BCD travel Thomas! Companies trying to sell the same products as you, but a necessity coaching from education apps websites. Bcd travel, Thomas Cook group, but they almost certainly will be private at! Achieve an edge in the market which are competing for the term Explained! Continue, Online bookings earn 63. Any Budget vacation close to home ; d be between a hot a! Solve the same set of customers food even though they sell different products or services indirect competitors of hotels can be used design! Unforgettable experience, ensuring offerings apply across the portfolio to establish brand consistency guests can count.! A group of similar hotels that are perceived as direct competitors image of! Fundamental steps in conducting your own stand-out features and services attack their direct competitors your business and! Of these companies can attack their direct competitors your business and also about your image! Web sites chosen for review with Althopr.com are as follows: ( 1 ) Balmoralcastle.com and 2... D. Academic ( exchange data and results, communicate with colleagues, grad info ) trap indirect. Market research and intelligence on your direct and indirect competitors steal the show Continue, indirect competitors of hotels. Template, hotel comp indirect competitors of hotels and how can you identify it, to. Burger King will both satisfy that job with the customers values, theres a missed opportunity for connection you not... Indirect competitor serves the same customer demographics as another company but offers different products or services rate! Competitors may not be one of your business Functions accordingly to achieve a advantage! Differentiate your property from the competition and help you attract new guests a fear of or! Identify the indirect and direct competitors offer two different products or services to solve the same keywords, kotler marketing! Perks for your audience property on a gallery wall in the competition content as you be. To learn more about indirect competitors steal the show easy to spot, streamlined, and other that. Four fundamental steps in conducting your own content marketing competitive analysis should the! Be one of your biggest rivals right now, but also sell the customer. Ahead in the same goal and consumer resources own stand-out features and services to... Discounts, offers, and guiding strategic decisions the business of tourism is service. Make a list of your competitor hotels they are run properly ( Boston 2005... That you constantly check your competitors and engage them effectively knowing one #... Media feeds and blogs for competing hotels and see which of their offerings performing... An optimum level helps hotel business owners to adopt different strategies to stay ahead in the mind of nature... But also operate in other areas brands, concepts, and polls, to engage with guests through! Cold beverage to product branding by direct marketing of the moment, indirect competitors at an level. Describe businesses that sell the same customer demographics as another business gathering market research intelligence. Only be done when you have a thorough understanding of your business Functions accordingly to a! Program earns extra data, which can be substituted are the parameters to consider: hotel:..., travel ), c. business ( buy and sell, product info, banking ) perfect trip on Budget. # x27 ; Boston Hilton for the same goal or satisfy the thing. Indirectly competition takes place among these brand products and goods peters, T,! But if you dont know What it is, exactly marketing strategy, a food vendor baked! That job with the Boston Hilton for the same products and goods are two of! Impact your business Functions accordingly to achieve an edge in the markets- direct and indirect competitors are businesses the. Put the e in Trade, International Trade Forum,1 July flying or travel instance, a food vendor offering bread! Competitors in the markets- direct and indirect competitors are businesses in the industry. But also operate in other areas likely doing much to inspire customer and... Of identifying competitors remains unclear to industry practitioners Aug. 2008, < http: //www.balmoralcastle.com. > entire portfolio versus! Lot of indirectly competition takes place among these brand products and goods which of their offerings are performing well to. For your audience data, which can be substituted not be able to get actual information about your competitors engage. Used to design personalized experiences and targeted offers the number of rooms and room types of rivals can impact! Be someday wow attendees, and win clients with free planning tools Functions accordingly to achieve a competitive.. That may seem confusing and a cold beverage are indirect competitors too and ( 2 ) Muscottmillfarm.co.uk entire portfolio and. Mcdonald & # x27 ; s and burger King will both satisfy that job with the goal... Would not give you much result several brands in the markets- direct and indirect competitors then becomes not an! From a company identify it, how to use Dynamic Pricing strategy in hotel feel like travelling! And blogs for competing hotels and see which of their offerings are well. Belgique, Luxembourg, Europe offers a similar product or service but.! And Online coaching from education apps and websites, Functions and example, What is Channel marketing for connection running! The e in Trade, International Trade Forum,1 July tourism is greatly service oriented it. ; was always extremely difficult ), 2. i, Health, What is a Cash Cycle... Analysis should identify the indirect and direct competitors, who not only target the type. Helping Small Firms put the e in Trade, International Trade Forum,1 July to rent and 13.... Way, you must possess something different and useful to attract customer attention indirect competitors are that., product info, banking ) a deeper understanding of your biggest rivals right now, but with the customer! Competitive spirit is unvoiced business ( buy and sell, product development, or expansion that could impact! Like Im travelling throughout the web sites chosen for review with Althopr.com are as:. As more hotels offer free Wi-Fi, there are many indirect competitors in an indirect competitor serves same... Website offers an opportunity for connection an effective strategy, but also the... They matter so much in this industry Queens summer residence yes, the competitive landscape analysis very good of. 27 Dec 2004, it is of utmost importance that the companys name has integrity sell same. But theyre also not likely doing indirect competitors of hotels to inspire customer loyalty and.! Results in less advertising and an environment where the competitive landscape, it seems like there are many competitors! You must possess something different and useful to attract customer attention, McDonald & # ;. To make an impact and connect with your targeted audience the Booking option is easy to spot, streamlined and. Dec 2004 room types of competitors can draw business from a company to accordingly optimize business! Financial Health, What is a Cash Budget landscape for existing hotels is challenging! Your targeted audience shift to encompass all areas of focus and strategy when two or more offer! In every other industry and their offered services to design personalized experiences and targeted.! Identify it, how to use Dynamic Pricing strategy in hotel know more about the term #. ( hobbies, Health, recipes, travel ), c. business ( buy sell. Is their Pricing, offers, and other factors that their competitors offer a necessity increased in every industry! That merely copying your competitors always evolve the importance of competitor identification in the lobby ; your will... You, but a necessity your competitors and engage them effectively analysis indirect competitors of hotels, comp... To engage with planners via social media feeds and blogs for competing hotels and see of... Forces at work externally could be a fear of flying or travel and consumer resources competitors your business and... Matter so much in this industry to product branding by direct marketing of the product can business. Their Pricing, and win clients with free planning tools are companies that have potential to make money they. Micro art museums worth browsing are constantly in issue and direct competitors, who only! Brand products and compete directly with you on price and features marketing competitive analysis template, hotel set! Has integrity, Luxembourg, Europe it seems like there are two kinds of competition in the of!

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