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sbarr011

Changes to Accounting Standards to Impact the Hotel Industry - 0 views

medium.com/...he-hotel-industry-dd1c6d842907

#hoteltechnology #ota #hospitalityaccounting

shared by sbarr011 on 02 Jul 18 - No Cached
  • In order to determine if revenue should be recognized on a “gross” or “net” basis, one needs to understand what flexibility the OTA has to discount the room rate, charge additional fees to a guest, or combine the room night in a package with other goods or services (e.g. flight, rental car) under the Merchant Model.
  • One of the changes to the accounting standards is on revenue recognition, specifically how revenues from Online Travel Agents (“OTA”) should be recognized. Currently, there are two models for the treatment of OTA revenues in the hotel industry:
  • Retail ModelGuest makes the reservation via the OTA but pays the hotel upon stay. Hotel remits commission to the OTA. Currently, the hotel recognizes revenue at the gross amount of cash collected (i.e. the total room rate), offset by a commission expense to the OTA. Revenue recognized through this model is typically recorded on a “gross” basis.
  • ...4 more annotations...
  • Merchant ModelGuest makes the reservation via the OTA and pays the OTA up-front. The OTA remits cash, net of their commission to hotel. Currently, hotel recognizes revenue at the net amount of cash received (i.e. the total room rate less the OTA commission), hence revenue recognized through this model is typically recorded on a “net” basis, which means a lower amount of revenue is recognized than under the “gross” basis.
  • he new standard requires the party who is the principal in the sales transaction to record the revenue on a “gross” basis. How is the principal determined? An entity is the principal in a transaction if it controls the good or service before that good or service is transferred to the customer.
  • Since the hotel is primarily responsible for providing the stay, the OTA does not take any inventory risk, and the price of the hotel room is largely determined by the hotel, the new accounting standard would indicate that revenue recognized from the Retail Model and Merchant Model should be both recorded on a “gross” basis, whereas previously, the revenue from the Merchant Model was paid on a “net” basis.
  • significant to hotels, as this will increase the amount of costs which are calculated as a percentage of revenues (e.g., credit card fees, management and franchise fees, sales taxes).
  • sbarr011 on 02 Jul 18
     
    Beginning in 2018 the financial accounting standards for hotel business are changing. One of the changes is the way OTAs charge for the rooms. Typically the OTAs operate under two methods the retail model and merchant model. The retail model uses the OTA to reserve the room but the final payment is made to the hotel. The hotel then gives a commission back to the OTA. Under The merchant model the payment is made to the OTA. Then the OTA takes the commission off and sends the remaining payment to the hotel for the price of the room. This comes out as a net transaction. The new standard is saying that the company that controls the transaction for the room has to mark the transaction or sale as a gross transaction. The new model forces the hotels to record the transaction on a gross basis. This can be a big difference for hotels because now they will have to increase the amount of costs and reduce the hotels bottom line.
laboygrisell

GDS vs. Channel Manager: What's Better for Small Hotels? - 1 views

www.littlehotelier.com/...-whats-better-for-small-hotels

GDS Small Hotels Hospitality

shared by laboygrisell on 30 Jan 19 - No Cached
  • Small accommodation providers have two options when it comes to distributing their online inventory. They can either do it via a global distribution system (GDS) or via a channel manager.
  • Option 1: Global distribution system (GDS)
  • GDS acts as a middle-man that connects your small hotel to a network of travel agency professionals, including corporate travel bookers. You connect to the GDS, giving you access to all of the travel agents your GDS is connected with. Those travel agents then sell your rooms to their customers (a mix of corporates and leisure travelers), and any bookings made are automatic.
  • ...15 more annotations...
  • Retail model This is the traditional model, ie. how you would work with a retail or traditional travel agent.
  • Merchant model This model applies to third party service providers that connect you to retail travel agents (by integrating with a GDS) and online travel agents.
  • Opaque model In this model, your guests don’t know they’re staying at your specific property until after they’ve made the booking.
  • Small accommodation providers can benefit greatly from using a GDS to connect to retail travel agents and corporate buyers. However, we highly recommend that you steer clear of the merchant model, because you would be paying commission to both the third party service provider and the OTA.
  • Option 2: Channel Manager
  • On average, small hotels can cut the commissions they pay in half by using an all-in-one solution
  • In this kind of business relationship, it’s much better to retain full control of your rates and inventory
  • In the distribution landscape, Global Distribution Systems (GDS) are just one of the many players involved in selling your rooms to a world of travelers. They are one of the oldest kinds of distributors in the industry, so it’s important that you understand how you can work with them effectively.
  • A GDS doesn’t work exclusively for accommodation providers – it does the same for airlines, activities, and car rental companies.
  • Your rooms are sold through all channels connected through the GDS e.g. traditional travel agents. Whoever sells your room earns a standard commission. Your guest pays you, then you pay your agent. An easy way to understand this model is if you think about how you would work with your local brick and mortar travel agency, that caters to walk-in customers. This is the default model used upon connecting with a GDS.
  • In this model, you would work with online travel agents (OTAs) like Booking.com via the third party service provider. An OTA sells rooms on your behalf, allowing your guests to find and select your hotel, check your availability, and make a booking.
  • However, this is very costly. As they are a third party provider of GDS services, you would not only pay commission to the OTA (a percentage of each booking), but you would also be paying the third party service provider a commission for use of the system (usually $10-$12 per reservation).
  • The only difference is, they won’t guarantee it (there is less of an incentive to sell you because there is no additional commission for them), and they will de-emphasise your listing (by placing it at the end of the list, hiding images, hiding room rate, and other strategies).
  • You set up several rates (usually 25%-45% less than retail rate), selling your rooms based on bids that guests make based on location, star rating, and other attributes. For example, Priceline uses a bidding system, and Hotwire allows guests to make bookings based on discounted rates.
  • GDSes are great for tapping into the corporate travel market – however, it is being used more for other types of travel than for accommodation.
  • mmadar on 09 Sep 19
     
    Compared to large hotel chains and airlines, the GDS can play a different role for businesses of smaller sizes. For small hotels, it may be beneficial to make use of a channel manager instead of depending on sales from a GDS. The article suggests to smaller hotels that channel managers, who work directly with travel agents, can mean more profit for your business. Using the GDS and a travel agency, you are technically paying 2 commissions. With a channel manager, you would only be paying one. Having this business relationship will cut out a middle man, and hotels with smaller budget will find this strategy more efficient.
  • dskomorowsky on 11 Sep 19
     
    I find this article a little misleading. The GDS are channels, can be managed by a channel manager, or in conjunction with, or separately but usually for smaller hotels require an intermediary. Accessing the GDS(s) are used less by smaller hotels for two main factors: 1. Costs and Fees 2. Scope of demand (driving the right customers). 3. Program Fees The article cites figures which have changed substantially since 2015, as of Q4 North American GDS growth was up 6.4% and ADR was up 4.2% YOY with 18.4% of all bookings coming through GDS. TravelClick, Inc. (2019, March 4) What isn't highlighted in the article was the fact that margin agreements with OTAs for smaller independent hotel range anywhere from 20-35% . If the article had done an actual cost comparison (access through intermediary to GDS instead of OTA) the 10% commission + access and delivery fee may have proven more profitable. It would have been better if they had done a little more comparative cost analysis. TravelClick, Inc. (2019, March 4). GDS Booking and ADR Growth Drive Strong Q4 2018 RevPAR Performance in Hospitality. Retrieved from https://www.hospitalitynet.org/performance/4092226.html
  • laboygrisell on 07 Sep 20
     
    This article from the Little Hotelier talks about what exactly is GDS and the Channel Manager and which on is better for Small Hotels. Small Hotels should opt for the system that gives them what they need, but in their price range and for the size of their business.
Zhe Chen

Spa Travel Reservation System for Travel Agents - 4 views

go.galegroup.com/...i.do

Technology Hotel Hospitality

shared by Zhe Chen on 15 Jan 13 - No Cached
  • Zhe Chen on 15 Jan 13
     
    This article talks about one kind of spa reservation system which connects travel agents and spa. This specific reservation system helps travel agents to get easy to find a particular spa treatment for their clients within a navigate system instead of searching thousands hotel, spa websites or other publications. It shows the convenience and efficacy for time management. Also, this spa reservations system clearly shows the commission details which travel agents should get it back from the hotel or spa by booking spa treatments for their clients. For the agents themselves, they can also track and monitory the commissions via a personal account any time.
  • Zhe Chen on 15 Jan 13
     
    Summary Personally, I think this kind of spa reservation system is a very good idea both for travel agents and spa. Fierce competitions and commissions reduce are both potential hazard to a travel agent and even makes it down. It helps travel agent to open up a new field of business and earn money under the competitions. Also by monitoring the commissions the agents can make sure that once they get clients to the spa treatment, they will get a certain commissions back. It's like kind of visible incentives for doing business for a long time. Making longtime relationships. For the spa, this system keeps the revenue and occupancy even in the low period by offering spa treatment to customers. It may works better by adhere with spa package, promotion or activities. It avoids making the spa therapists nothing to do just wait and bring customers back. But it may not works in the peak seasons due to the capacities in spa always limited.
  • anonymous on 18 Jan 13
     
    This spa reservation system is very efficient, especially nowadays. It is good that is shows the commission details, and also the booking spa treatments. People want to be updated, especially when it comes to something that they are interested in going, like the spa.
ppate011

GDS business can be a significant source of incremental bookings and increased margin f... - 0 views

bookassist.org/...en

technology hospitality software business travel

shared by ppate011 on 26 Jan 19 - No Cached
  • Every hotelier knows the advantage of direct online bookings to their hotel. But there is more to direct than just bookings on your website booking engine.
  • At Bookassist our metasearch management team has delivered metasearch bookings growth of 130% in the first quarter of 2018 versus the last quarter of 2017 (see https://bookassist.org/company/testimonials/en/)
  • The GDS is a large computer network that represents a single point of entry to travel agents and travel sites worldwide
  • ...7 more annotations...
  • A 2017 study of more than 900 travel agents located throughout 52 countries revealed that travel agents are continuing to report a record use of the GDS for hotel reservations.
  • It’s important to note also that GDS corporate business typically delivers a quality customer that usually augments hotel F&B/C&B revenue using his employer expenses to wine and dine in the hotel, in contrast to leisure travellers who tend to spend outside the hotel.
  • Because of the fixed transaction fee element, calculation of the CPA of a GDS booking will depend on the hotel sale rate achieved and the length of stay.
  • For the individual hotelier, the requirements for applying to consortia or account managing their property on the GDS can be onerous.
  • RFP is “request for proposal”, where companies make the market aware of the volume of bednights they expect to need for the upcoming year.
  • GDS business can be a significant source of incremental bookings and increased margin.
  • It’s time to make sure that you are open for business on the GDS.
  • ppate011 on 26 Jan 19
     
    Over the few years, travel agents are using booking through Global distribution systems. Hotels however are having to pay a 20% booking fee when people book through GDS. Travel agents are also now using Airbnb, and alternative booking, because they aren't seeing any commissions on them. GDS is a large computer network that represents a single point of entry to travel agents and meta search sites. GDS are heavily used in the business and corporate travel accounts. GDS corporate business typically delivers more revenue for hotels because business travelers usually eat and drink in the hotel, rather than travel outside the hotel and spend money. Travel agents use commissionable and non-commissionable booking that, where commissionable bookings must add typically 8-10% agency commission on top of the GDS fees. GDS can be a good source of incremental bookings and increase margins.
  • ppate011 on 26 Jan 19
     
    Over the few years, travel agents are using booking through Global distribution systems. Hotels however are having to pay a 20% booking fee when people book through GDS. Travel agents are also now using Airbnb, and alternative booking, because they aren't seeing any commissions on them. GDS is a large computer network that represents a single point of entry to travel agents and meta search sites. GDS are heavily used in the business and corporate travel accounts. GDS corporate business typically delivers more revenue for hotels because business travelers usually eat and drink in the hotel, rather than travel outside the hotel and spend money. Travel agents use commissionable and non-commissionable booking that, where commissionable bookings must add typically 8-10% agency commission on top of the GDS fees. GDS can be a good source of incremental bookings and increase margins.
artandmer

Working with OTAs: The Indirect Distribution Dilemma - 0 views

www.hospitalitynet.org/...125000132.html

OTAs GDS direct bookings indirect commissions distribution strategy

shared by artandmer on 25 May 22 - No Cached
  • properties that work with Online Travel Agents (OTAs) perform significantly better financially than those that do not, with commissions being more than compensated for by the increased revenues, resulting in higher bottom-line profits
  • However, in reality, many hotels still have a (perhaps historic) negative opinion of OTAs
  • the commission levels reaching 25%, sometimes even 30%, that was steep. The current situation is more within the 15-20% range
  • ...13 more annotations...
  • would you have gotten that booking without the OTA?
  • OTAs are a necessary evil, and they bring value most of all whenever they bring incremental revenue to hoteliers. The challenge is to strike the right balance in the distribution mix.
  • play the role as a true partner — must offer independents and chain hotels alike greater flexibility around closing out dates, close to arrival/departure, MLOS, and related tools in their inventory management toolkit
  • Few property owners or managers would object to paying higher margins on inventory that they can't sell on their own; but having to eat that cost on last room available, or even close to last room, during high demand periods is too high a price to pay
  • hoteliers tend to think these bookings are "free." Well, bad news is that they're not: booking engine commissions, advertising on search/metasearch engines, website creation, promo-codes, hosting, SEO, etc.
  • The real question is: How much dependency on the OTAs is healthy for your property: 20%? 30%? 50% or more of of booked room nights?
  • I believe a healthy distribution ratio is the one of 2.5:1 direct online vs OTA booked room nights, enjoyed by the major hotel chains. Marriott and Hilton are doing even better with 3:1 ratio.
  • So what is a smart distribution channel strategy? Blended distribution strategy is the smart thing to do in hospitality
  • OTAs are storms of computer engineers with a pack of money. Would you bet them at their own game? Not sure. Can you "use them" for your own needs only when necessary under particular conditions? I'm sure you can! 
  • OTAs can help hotels gain market insights and business intelligence by applying machine learning algorithms to analyze property-level data. Some OTAs might have already provided some of those value-added reports to their hotel partners. If that is the case, I encourage the OTAs to engage the hotel sales team and see what additional value/reports they can add to the partnership.
  • In fact, we would advise hoteliers to take advantage of OTAs' online reach by listing on their platforms while, concurrently, strongly reinforcing their direct channels by adopting new technology solutions. 
  • The 2021 travel landscape has dictated that the leisure guest is all-important and that guest loyalty should be the prize, not channel loyalty.
  • To put it simply, OTAs are perfect for a first-time visitor to your hotel destination.  If a returning guest books via the OTA for their 2nd visit, then this is a complete failure on the hotel for missing the opportunity to create value or establishing a compelling reason for the guest to book directly.
  • artandmer on 25 May 22
     
    The relationship with OTAs should be about finding the right balance (or mix of business) for your specific hotel. A commonly held point of view is that OTA commissions are exorbitant (in dollars, or as a % of revenue), but shouldn't we be glad if they sold a room we were not going to sell otherwise?
Dongyun Oh

10 Features To Look Out For in a Hotel PMS - 0 views

management-software.ezinemark.com/-a-hotel-pms-7d327e0a6a67.html

hotel technology software

shared by Dongyun Oh on 23 Sep 12 - No Cached
  • A quick check on 10 features that you should be looking for in a web based property management system are listed below
  • 1. Web Reservation
  • . Revenue Management:
  • ...9 more annotations...
  • Front Desk Management:
  • Back Office Work: One of the most boring yet very essential departments is the
  • back office.
  • Housekeeping:
  • Preparing Invoices and Bills:
  • Travel Agents Commission:
  • Report Making:
  • Ability to set the PMS for your hotel
  • Multi-Currency and Languages Features:
  • shuo zhang on 23 Sep 12
     
    The PMS can do many things for the hotel, like web reservation, revenue management, front desk management, back office work, housekeeping, preparing invoices and bills, making report, multi currency and language. It involved all parts of the operation of the hotel. It is very useful. 
  • Dongyun Oh on 12 Feb 13
     
    Property management systems should be chosen after a lot of deliberation and research. With many property management systems in the market, it is important that you are not cheated or you don't hastily buy something that doesn't work for you. A quick check on 10 features that you should be looking for in a web based property management system are listed below: 1. Web Reservation: One of the most important things to look for in a web based property management system is its web reservation features. Having a good hotel with great facilities is no longer enough. Letting people know about it is crucial for the success of the business. A hotel management software is the right tool for this purpose nowadays. When you are looking into a PMS, check that its web reservation system is easy to use, not time consuming and is flexible. 2. Revenue Management: Getting your finances sorted is essential so that even in the most testing times, you finances and revenue are well managed. A PMS that has a good revenue management system will see that you can control your rates efficiently and provide easy yet detailed reports of the same to any authorized person as and when required. 3. Front Desk Management: Sorting out the checking in and checking out process, facilitating the guests with whatever they need, and linking the same details with all the concerned departments are some of the things that a front desk console should be doing for you. Check that your hotel management software can efficiently take care of these. 4. Back Office Work: One of the most boring yet very essential departments is the back office. All expenses are doubled checked here; all means of revenue calculated and audited, statistics are prepared as are ledgers. A property management system should be having a console that can look into these things easily and without much human effort. 5. Housekeeping: Hotel management software can be a great help when it comes to taking care of rooms. Fro
Emily Bova

E-Commerce News: Ghost of Christmas Past Haunts Amazon - 0 views

www.ecommercetimes.com/...74325.html

amazon net income holiday earnings

shared by Emily Bova on 03 Feb 12 - No Cached
  • Amazon's net income was US$177 million, or 38 cents per share, a 57 percent percent drop from a year ago.
  • Sales for the three months before Dec. 31 came out to $17.4 billion, lower than Wall Street expected over the traditionally busy holiday season.
  • Flooding in Thailand slowed down production for many tech companies this year
  • ...4 more annotations...
  • The company used more third-party vendors than usual, which helps margins but cuts down drastically in revenue.
  • The world's largest online retailer has also been using promotions such as the Amazon Prime program, where customers can pay $79 a year to receive unlimited two-day shipping. The offer draws customers to the site, but over a busy holiday season, the shipping costs hit the retailer hard.
  • lower demand than it expected for video game sales and European currency fluctuations
  • A lot of people underestimate the profit of the e-book. You don't have to pay money for delivering or printing, so you can get tremendous revenue,"
  • Emily Bova on 03 Feb 12
     
    In Amazon's last quarter, net income dropped by 57 percent from a year ago. Sales for the three months before December 31 came out to $17.4 billion, lower than Wall Street expected over the traditionally busy holidy season. It is predicted that for the next quarter outlook, there could be anywhere from a gain of $100 million to a loss of $200 million. While Amazon continues to profit in sales of its best selling Kindle devices, there were a variety of factors that contirbuted to its losses. The flooding in Thailand slowed down production for many tech companies. Third-party sellers (which give a 13% commission to Amazon as oppsoed to 100% commission when Amazon sells themselves) were used more than usual. Promotions such as the Amazon Prime program which allows the customer to pay a fixed rate and get umlimited two-day shipping hurt the retailer hard over the busy holiday season with shipping costs. Other reasons were lower demand for skimwords
ccpanther88

How Can Hoteliers Take Advantage of the Disruptive Shift from Desktop to Mobile? | By M... - 0 views

www.hospitalitynet.org/...4068791.html

hotels revenue booking GDS OTA mobile connect

shared by ccpanther88 on 28 Jan 15 - No Cached
  • Last year over 38% of web visitors and nearly 40% of page views were generated from non-desktop devices
  • nearly 21% of bookings and 17% of room nights came from tablets and mobile devices.
  • Tablets generated 226% more revenue and 77% more room nights than "pure" mobile devices
  • ...2 more annotations...
  • nvesting in your property website to maximize revenue from the three screens
  • Keeping the consumer engaged and reaching them multiple times throughout their journey (through which you will also be competing with the OTAs and other hotel websites) requires using multiple channels to tell your hotel's story.
  • ccpanther88 on 28 Jan 15
     
    Mark Starkov, President & CEO at HEBS Global provides advice as to how to understand and optimize several tools hotels use for bookings. We live in a world where mobile connectivity is on the rise with no fall in sight. More and more people are spending more time and money on and through these devices, and it is something that our travel and hospitality industries are booming from. In 2014, nearly 40% of web visitors and page views were credited to non-desktop computers. In terms of hotels, these devices can also account for over 20% of bookings and 17% of sleeping room nights. Between 2013 and 2014, hotel revenue generated via tablets more than doubled and booked over 77% more room nights than non-"pure" devices. These stats alone should have all hoteliers seeing opportunity. The world of e-commerce is allowing hoteliers and other travel companies to open up many revenue streams. Between DGS, OTAs, and CRM, we are able to reach a much wider audience and bring in an exponentially larger amount of business. These tools do not work for free, as there are often commissions or subscription fees these companies are compensated for. As valuable as these third-party tools are, it is equally important to invest in your direct-booking outlet. Booking direct business keeps the most money in your pocket. Not only will you get optimum rates, you will also save on commissions, referral fees, etc. Just imagine not having to pay a third-party commission of 10% of a $100,000 dollar piece of business. That's 10 thousand saved. Sometimes, when large corporate events are booked, there can be two referral services involved, resulting in 15% commission payout. In terms of direct vs. third-party business, a hotel could not survive on only one.
anonymous

European Commission opens GDS antitrust probe: Travel Weekly - 0 views

www.travelweekly.com/...sion-opens-GDS-antitrust-probe

technology hospitality

shared by anonymous on 16 Sep 19 - No Cached
  • According to the EC, its investigation will focus on terms in the companies' agreements with airlines and travel agencies that could restrict agencies' ability to use other ticket distribution services. 
  • Sabre is headquartered in Southlake, Texas. Amadeus is based in Madrid. Competitor Travelport, based in Langley, U.K., is not part of the EC's investigation
  • "The process will confirm that Amadeus' business practices are fully aligned with legal and regulatory requirements," Amadeus said, noting that agents can choose which GDSs they work with (including working with more than one), and airlines can decide what fares they make available inthe GDS.
  • ...1 more annotation...
  • Sabre said it will cooperate with the EC's investigation
  • anonymous on 16 Sep 19
     
    The European Commission opened up an investigation into Sabre and Amadeus to see if the GDS's are restricting competition. Amadeus and Sabre are fully cooperating with the investigation. Sabre states that "it remains committed to offering competitive access for travel agencies to airline content.."
Ryan Jove

Headline Story | equities.com - 0 views

www.equities.com/...headline-story

headline story equities technology hospitality Software Business tech solution

shared by Ryan Jove on 09 Oct 12 - No Cached
  • tw telecom CEO Keynotes COMPTEL PLUS Fall 2012 Convention & EXPO
  • called for the Federal Communications Commission (FCC) to embrace "smart, forward looking competitive telecom policy with price and service quality rules where incumbents have market power, regardless of technology used."
  • "The FCC should establish technology-neutral policies, a principle that is central to the Telecom Act of 1996 and competition policy,"
  • ...7 more annotations...
  • "The industry is moving from a physical infrastructure to a logical one. We're moving from circuits to services. Innovation is driving our success as a competitive indu
  • stry." 
  • Intelligent Network
  • Intelligent Network
  • "We as an industry must adapt to new technologies and capabilities as our customers adopt IT strategies for cloud services and solutions. And we must convince the FCC to update its competition rules to accommodate these changes.
  • "Competition drives innovation. Innovation grows the market,"
  • The company's fiber optic networks directly connect more than 16,300 buildings across the United States
  • Ryan Jove on 09 Oct 12
     
    This article outlines the discussion about whether the Federal Communications Commission (FCC) should change their policies that were enacted in the Telecom Act of 1966.  At the COMPTEL PLUS Fall 2012 Convention and EXPO, Larissa Herda, the Chairman, CEO, and President of tw telecom urged the FCC to adapt to the new competitive technologies.  She emphasizes the importance of change going forward and discusses the Intelligent Network as an example.  She calls for the adoption of new IT Strategies for cloud services and solutions.  Above all, this article discusses the convention as a platform for the discussion of change in the tech world.
amichellemagluta

How Can Small Hotels Work With Global Distribution Systems (GDS)? - 1 views

www.littlehotelier.com/...lobal-distribution-systems-gds

hotels distribution systems GDS

shared by amichellemagluta on 14 Sep 16 - No Cached
  • Small accommodation providers can benefit greatly from using a GDS to connect to retail travel agents and corporate buyers. However, we highly recommend that you steer clear of the merchant model, because you would be paying commission to both the third party service provider and the OTA. On average, small hotels can cut the commissions they pay in half by using an all-in-one solution like Little Hotelier that connects you directly with hundreds of OTAs. Small hotels, bed & breakfasts, guest houses and inns don’t have big budgets to play with (or not as big as your larger counterparts). Why pay commission twice? We strongly recommend that you connect to your OTAs directly, instead of via a third party service provider. In this kind of business relationship, it’s much better to retain full control of your rates and inventory, and cut out the middle-man by using an integrated channel manager to sell rooms through your OTAs. If your current solution doesn’t support this, get in touch with us – we are happy to help!
  • amichellemagluta on 14 Sep 16
     
    This article explains the many questions surrounding the GDS or global distribution system. More importantly, the article explains how smaller hotels can use the GDS system to their advantage. The GDS system is more commonly used by larger entities such as the airline industry, larger hotels, travel agents, etc. However this does not mean that the GDS system cannot be used for a smaller hotel. Using a GDS may be able to greatly benefit those smaller hotels.
Xiameng Zheng

TripAdvisor Advertising - CPC Case Study and ROI | The Hotel Internet Marketing Blog - 0 views

hotelemarketer.com/...rtising-cpc-case-study-and-roi

shared by Xiameng Zheng on 04 Apr 12 - No Cached
  • a deeper look at the performance of TripAdvisor PPC
  • These conclusions were derived by Mirai after investing €27,000 with 58 hotels:
  • Your direct rates, your hotel’s website rates, can now appear on Tripadvisor dealing face to face with intermediaries such as booking.com and expedia.com. Should you join this program? What can you expect regarding the required investments and the return you will obtain? Does this return affect your hotel’s position within your city’s ranking? After a comprehensive three-month study, we have got answers.
  • ...10 more annotations...
  • what is the key point in the decision making processes about whether to invest in Tripadvisor’s PPC program?
  • As a prerequisite, and as for any investment that will bring traffic to your official website, make sure that it is optimized to convert, offering the potential client the best experience regarding design, reservation engine, rates and also enough room availability.
  • High cost: 25-45%
  • (again, this is related to your position). Compare it with other channels and decide whether the same investment would offer you a better return by other means. If you totally bet on your official website (which will probably collide with intermediation), the costs will be lower. Think that Tripadvisor is enabling the user to compare the rates, so even if the rate is not the only thing to take into consideration, the fact is that Tripadvisor really focuses on it.
  • Limited expenses control
  • The better your hotel’s position is within the pages of your destination, the more chances you will have to receive reservations by this means.
  • It is better if your average reservation value is high.
  • If you don’t participate directly, you will be feeding your intermediaries.
  • Satisfy your clients.
  • Trial and error.
  • Heqing Zhu on 04 Apr 12
     
    This article analyzed the performance of TripAdvisor PPC activity in detail, and showed the results of an investigation regarding to hotels' commission level, traffic ranking, and conversion rate, then talked about whether it worth to invest by hotels.  That is useful for hoteliers to work on the ROI, and make right decisions.
  • Xiameng Zheng on 27 Mar 13
     
    This article is about whether to invest in Trip advisor's PPC program. It offers some benefits and correlations between the commission fee and Trip advisor's score. It introduces this program through several aspects, like the cost, the prerequisite. And the program do has some limitations, like the limited expenses control and hotel position preference. But it can provide properties social network, customer satisfaction, word of mouth through this new distribution way.
anonymous

Another rumour quashed then - Amadeus backs growing anti-Google lobby | Tnooz - 0 views

www.tnooz.com/...acks-growing-anti-google-lobby

gds ota google

shared by anonymous on 01 Jun 12 - No Cached
  • The floodgates have opened – last week’s frenzy of activity, when Expedia and then TripAdvisor submitted complaints to the European Commission about Google, has clearly triggered something. To paraphrase, as both pretty much argue the same thing, the complaints centre on accusations of unfair practices in search which, the pair argue, is damaging the industry and consumers. No major surprises there, given that Expedia and TripAdvisor were original members of the FairSearch anti-Google lobbying group in the US. What raised just a few eyebrows was when, a few hours after TripAdvisor’s statement was released, ETTSA (European Technology and Travel Services Association) came out in support of the pair. ETTSA primarily represents the interests of the GDSs, as well as online travel agencies such as Expedia, Ebookers and Travelocity, in Brussels, but the decision to publicly back individual companies effectively puts the GDSs, under the umbrella of their representative body, also up against Google. Fast forward a few days and now Amadeus has decided to publicly back Expedia’s complaint to the EC.
  • Amadeus, alongside ETTSA, is particularly concerned about the likely impact of Google Flight Search, when it eventually expands outside of the current customer base of the US.
  • But for Amadeus, which just a few weeks ago saw its UK MD Diana Bouzebiba suggest again that Google needs partners in Europe, to now also come out in support of the anti-Googlers will speak volumes to those that have watched closely ever since June 2010, when Google first announced its acquisition of ITA Software. Clearly Amadeus is not expecting to be forming a major partnership with Google any time soon. Unless it is some kind of weird reverse psychology, of course.
  • anonymous on 01 Jun 12
     
    The contention between these OTA's and Google is a bit confusing and requires further research, but I think what is essentially at hand is severe competition. Google Flight has implications to cross over into OTA territory, which puts GDS's in a difficult position: support the OTA's or enter another profitable partnership with Google. Amadeus seems to be backtracking on its stance regarding new Google Flight Search, originally implying forming a partnership with Google, and now stating it is taking the sides of "anti-Googlers Expedia and TripAdvisor.
Irine Wallace

Opera Property Management System - 0 views

www.micros.com/...OPERAPropertyManagementSystem

Property Management System (PMS)

shared by Irine Wallace on 10 Sep 12 - No Cached
  • Reservations ― features are integrated with other functionality such as profiles, cashiering and deposits. This property management software module provides a complete set of features for creating and updating individual, group and business block reservations, including deposit handling, cancellations, confirmations, wait listing, room blocking and sharing.
  • Reservations ― features are integrated with other functionality such as profiles, cashiering and deposits. This property management software module provides a complete set of features for creating and updating individual, group and business block reservations, including deposit handling, cancellations, confirmations, wait listing, room blocking and sharing.
  • Reservations ― features are integrated with other functionality such as profiles, cashiering and deposits. This property management software module provides a complete set of features for creating and updating individual, group and business block reservations, including deposit handling, cancellations, confirmations, wait listing, room blocking and sharing.
  • ...11 more annotations...
  • Reservations ― features are integrated with other functionality such as profiles, cashiering and deposits. This property management software module provides a complete set of features for creating and updating individual, group and business block reservations, including deposit handling, cancellations, confirmations, wait listing, room blocking and sharing.
  • Profiles ― complete demographic records for guests, business accounts, contacts, groups, agents and sources. Profiles include addresses, phone numbers, membership enrollments, stay and revenue details, guest preferences and additional data that make reservations handling and many other activities faster and more accurate.
  • Back Office Interface ― revenue transfers, market statistics transfers, daily statistics transfers, and city ledger transfers can be easily made from OPERA Property Management System to a back office system.
  • Rooms Management ― handles all facets of room supervision including availability, housekeeping, maintenance and facility management. The Queue Rooms feature of the property management software coordinates Front Office and Housekeeping efforts when guests are waiting for rooms which are not immediately available for assignment.
  • Cashiering ― posting guest and passer-by charges (including taxes and other generates), making posting adjustments, managing advance deposits, settlements, checkout and folio printing are a few of the many activities handled by OPERA Cashiering. Cashiering accommodates multiple payment methods per reservation including cash, check, credit cards and direct bill. In multi-property environments, guest charges can be cross-posted from any property in the hotel complex
  • Cashiering ― posting guest and passer-by charges (including taxes and other generates), making posting adjustments, managing advance deposits, settlements, checkout and folio printing are a few of the many activities handled by OPERA Cashiering. Cashiering accommodates multiple payment methods per reservation including cash, check, credit cards and direct bill. In multi-property environments, guest charges can be cross-posted from any property in the hotel complex
  • Cashiering ― posting guest and passer-by charges (including taxes and other generates), making posting adjustments, managing advance deposits, settlements, checkout and folio printing are a few of the many activities handled by OPERA Cashiering. Cashiering accommodates multiple payment methods per reservation including cash, check, credit cards and direct bill. In multi-property environments, guest charges can be cross-posted from any property in the hotel complex
  • Cashiering ― posting guest and passer-by charges (including taxes and other generates), making posting adjustments, managing advance deposits, settlements, checkout and folio printing are a few of the many activities handled by OPERA Cashiering. Cashiering accommodates multiple payment methods per reservation including cash, check, credit cards and direct bill. In multi-property environments, guest charges can be cross-posted from any property in the hotel complex
  • Cashiering ― posting guest and passer-by charges (including taxes and other generates), making posting adjustments, managing advance deposits, settlements, checkout and folio printing are a few of the many activities handled by OPERA Cashiering. Cashiering accommodates multiple payment methods per reservation including cash, check, credit cards and direct bill. In multi-property environments, guest charges can be cross-posted from any property in the hotel complex
  • Cashiering ― posting guest and passer-by charges (including taxes and other generates), making posting adjustments, managing advance deposits, settlements, checkout and folio printing are a few of the many activities handled by OPERA Cashiering. Cashiering accommodates multiple payment methods per reservation including cash, check, credit cards and direct bill. In multi-property environments, guest charges can be cross-posted from any property in the hotel complex
  • Your front desk often makes the difference between ‘never agains’ and ‘long-term relationships.’ At the core of the OPERA Enterprise Solution is our premier property management software, the OPERA Property Management System (PMS). Designed to meet the varied requirements of any size hotel or hotel chain, OPERA PMS provides all the tools a hotel staff needs for doing their day-to-day jobs – handling reservations, checking guests in and out, assigning rooms and managing room inventory, accommodating the needs of in-house guests, and handling accounting and billing. The property management software is configurable to each property’s specific requirements and operates in either single-property or multi-property mode, with all properties in an enterprise sharing a single database
  • Irine Wallace on 10 Sep 12
     
    SUMMARY OPERA Property Management System is fully integrated with all the OPERA modules and offers the most extensive list of certified interfaces in the industry. FEATURES: Reservation, rate management, profiles, front desk management, back office interface, room management, cashiering, account receivables, commissions, reporting, fully configurable, global perspective, hospitality system interface, opera express, tailored to fit hotel's operational business needs, scalable to suit the size of the hotel, helps operators to become more productive, profitable and professional, and delivers fast, accurate and online information on property
  • Jenna Rashbaum on 10 Sep 12
     
    A lot of hotels use OPERA as their property management system. I have never personally worked in a hotel so I am not familiar with PMS's but from everything that I have read and heard from people is that OPERA is very efficient with everything. This system seems as though it can do everything for your property just the way that you would like it to. OPERA is customizable to your company's needs which seems great. This is a great website that you posted as it informs all of us exactly what this PMS is capable of.
Gabriela Moreno

The travel business: The ineluctable middlemen | The Economist - 0 views

www.economist.com/21560866

Technology software travel business

shared by Gabriela Moreno on 13 Sep 12 - No Cached
  • Some of the tastiest margins in the travel business are enjoyed by the “global distribution systems”
  • The airlines’ chronic unprofitability is partly the result of a wave of competition
  • But it is also due to two moves by the airlines, from the 1990s onwards, that in retrospect were strategic errors. One was to stop paying direct commissions to travel agents. The other was to set the reservation systems free to become (as the airlines see it) profit-gobbling monsters that devour their parents.
  • ...7 more annotations...
  • These were originally created by several of the largest airlines to distribute their flights through travel agencies but have since become independent firms. Most flights booked through a physical or online travel agent go through a GDS, which charges the airline a fee of about $12 per round trip, passing a few dollars of that to the travel agent.
  • Some airlines have thrown in the towel and let a GDS take over the running of all their in-house systems for handling passengers—in some cases, even their websites
  • In recent years the main hope for restoring airline profitability has been ancillaries: all those extra charges for meals, checked bags, less-cramped seats and the like
  • Hoping to solve these problems, the airlines’ international association, IATA, is working on a grandly titled “new distribution capability”
  • The GDSs could make use of such services, so as to sell the airlines’ full range of extras as well as just flights. But perhaps of more interest to the airlines is that it would become easier for travel agents to build computer systems that deal directly with airlines. It would also become easier for search engines to scour the web for flights, assemble a list of options for travellers, then let them click through to the website of their chosen airline to complete the booking—again without a GDS’s involvement.
  • IATA hopes to have its new technical standards agreed by the end of the year—though as a rule, getting airlines to agree on such things is tricky
  • The airlines argue that the cost of the middlemen adds to the price of tickets (though the superficial evidence suggests that it is airline shareholders who suffer). They say they want to reform the distribution system to offer flyers a wider choice and a more individually tailored service. The GDSs argue that they provide travellers, through their agents, with impartial comparisons of all available flights, allowing them to get the best value.
  • Gabriela Moreno on 13 Sep 12
     
    This article gave me a different perspective as to how the GDS system has affected the airline industry.  According to The Economist, the airlines chronic unprofitability is due to two strategic errors of their own doing. One was to stop paying direct commission to travel agents and the other was to set the reservations systems free. Despite their best efforts airlines are now having very hard time getting travelers to bypass GDS agents and come to their websites. A majority of the profit margins in the travel business are seen by the GDS systems and airlines are left footing the bill. In hopes of resolving this problem, the airlines international association is working what is called "new distribution capability." Through use of this service it would become easier for travel agents to utilize computer systems that would deal directly with the airlines. However, ambitious IT projects have failed hundreds of different times across hundred of different industries and getting the airlines to agree to make such a dramatic change in IT would be a daunting task. Both the airlines and GDSs argue they hold the true consumer advantage.  On one hand, airlines are able to provide flyers with personally tailored service, while on the other, the GDSs allow customers to compare flights for the best value. Whether it be the airlines or the GDSs that prevail, the future of travel is now online. 
Fesal Alanazi

Amadeus building a "Google Hotel Finder" for travel agents - 1 views

hotelmarketing.com/...hotel_finder_for_travel_agents

agents hotel

shared by Fesal Alanazi on 21 Jan 12 - No Cached
  • multi-source" hotel distribution initiative
  • giving agents easy access to hotels from different sources from a single screen
  • similar to Google Hotel Finder allows agents to click on a hotel listing and view its multiple offers from different sources.
  • ...2 more annotations...
  • the strong trend to self-booking tools in corporations increases demand for the new graphical user interfaces not only from corporations but also their travel agents
  • Just a day after the announcement of its new distribution alliance with Amadeus, HRS send a note to all hotel partners announcing a commission increase from 13% to 15% effective March 1, 2012.
  • Fesal Alanazi on 21 Jan 12
     
    This article is talking about a distribution system called Amadeus. It gives agents easy access to a hotel listing and view its multiple offers from different source, which is similar to Google hotel finder. however, a day after the announcement of this system, HRS announcing to all hotel partners a commission increase from 13% to 15%
Jeremy Fairley

A New Amadeus Report Outlines the Future of Travel | ehotelier.com News Archives - 0 views

ehotelier.com/...item.php

technology software solution mobile Business tech future travel

shared by Jeremy Fairley on 26 Jan 12 - No Cached
  • Jeremy Fairley on 26 Jan 12
     
    "Technologies and evolving social values and trends will combine to establish a new era of collaborative travel over the next decade and beyond , according to "From chaos to collaboration: how transformative technologies will herald a new era in travel" a report developed by The Futures Company and commissioned by Amadeus."
  • Jeremy Fairley on 26 Jan 12
     
    Article discusses a new study recently commissioned by GDS Provider Amadeus outlines the Future of Travel. Article summarizes in six key areas where technology innovation can be deployed. I am in total agreement that depth of experience rather than breadth of experience will transform the travel experience. Social check-in apps like SCVNGR and game mechanisms can enhance the visitor experience in a destination greatly. I was under the impression item #4 had already happened with the rise in use of social media and user generated content review sites like TripAdvisor, but the article maybe supports that this is a trend not likely to go anywhere soon. Those who wish to read the study can access it here directly... http://new.amadeusblog.com/wp-content/uploads/2012/01/From_chaos_to_collaboration.pdf
Melissa Krajewski

Travelport agent survey finds support for GDS ancillary sales - Travolution.co.uk - 0 views

www.travolution.co.uk/...t-for-gds-ancillary-sales.html

GDS ancillary revenue travel agents

shared by Melissa Krajewski on 04 Feb 12 - No Cached
  • Corporate and leisure travel agencies can expect more technology to help them sell airline ancillaries after a global survey found high levels of support for this service through GDSs.
  • Agents understand that as the airline product continues to evolve and ancillaries form an increasingly significant role in the purchase decision and buying process, travel customers continue to look to agents to support them in purchasing itinerary solutions.
  • Melissa Krajewski on 04 Feb 12
     
    This article discusses what travel agents think about the enhanced ability of both corporate and leisure based travel agencies to sell airline ancillaries because of improved Global Distribution Systems' technologies. Ancillaries are products and services that airlines sell to gain additional revenue on top of your ticket price. Ancillaries have become increasingly popular in the airline industry because of the sky rocketing price of jet fuel. To keep ticket prices down airlines are "unbundling" items from the overall experience. This presents them with an opportunity to turn a profit by charging fees for bags (carry on, checked, additional), on board food and drink, credit card purchases, headphones. It seems like everything you encounter from when you arrive at the airport to when you disembark the plane has a fee. This phenomenon is especially present in Low cost carriers such as Spirit, Air Tran, Jet Blue, etc. However there are consumers who disagree with this additional costs as is apparent in Southwest's continuous marketing campaign. I'm sure everyone has seen the commercials with Southwest representatives 'flagging' down unnecessary fees in order to promote their 'bags fly free' campaign. Anyhow the reason I am explaining ancillary revenue is because travel agents are now starting to sell more ancillary products such as hotel accommodations, travel insurance, rental cars because of GDS technologies. They can track the sale of fees through EMD (Electronic miscellaneous Documents) which is the current industry standard. In the article some agents state that the EMDs are hard to understand and use. I believe until the EMDs become "seamless and easy to use" there will exist some hesitation to sell airline ancillaries. However on the other hand the article states that Travelport is working towards a simple and uniform platform called Travelport Universal API/Desktop. Once this comeplete perhaps more agents will feel comfortable selling ancillaries. This is a goo
  • ...1 more comment...
  • Melissa Krajewski on 04 Feb 12
     
    Diigo keeps cutting off my descriptions... This is a good start to acknowledge the opinions of travel agents using GDS to sell airline ancillaries but the arguments were confusing and hard to follow. From reading the article I would address ethical concerns that airline agents may have in selling ancillary revenue for commission since 44% of those polled did not impose fees for attaining the additional products and services. I understand the airlines need to stay in business with the increase of jet fuel prices but there must be some way to avoid imposing the fees besides raising ticket prices and laying off employees (American Airlines announcing 13,000 layoffs).
  • Ligia Elizondo on 04 Feb 12
     
    I still remember when most airlines used to include breakfast or dinner for their passengers including alcoholic beverages well that doesn't happen any more. I believe when Travelport Universal Desktop becomes available it would become more clear to travel agencies the transaction process and for the consumers what products and services they are ofering.
  • Melissa Krajewski on 04 Feb 12
     
    I too miss the days of free sodas and peanuts. "Sigh-" sometimes its the little things in life that bring the most joy. I agree I think the new Travelport Universal Desktop will be a valuable tool if utilized correctly.
Jingjia Zhang

10 Features of a Successful Hotel PMS - 0 views

ezinearticles.com/?10-Features-of-a-Successful-Hotel-PMS&id=5643305

pms hotel features

shared by Jingjia Zhang on 14 Jun 12 - No Cached
  • david swatscheno on 14 Jun 12
     
    This article focuses on the top 10 reasons why PMS are successful. The first thing it gets into is the reservation system. You want your guests to be able to reserve rooms quick and easy. The next thing it talks about is revenue management and being able to handle the room rates efficiently. Other areas the article focuses on is front desk work, back office work, room management, billing, commission processing, creating reports, and international features.
  • Jingjia Zhang on 29 Sep 12
     
    There are so many PMS systems when you try to look for the right one. This article provides 10 features of a successful hotel PMS.1, the reservation process;2, revenue management;3, front desk work;4, back office work;5, room management;6, billing; 7, commission processing;8, creating reports;9,ability to configure;10, international features.
Jia Kim

What Are the Advantages of a Human Resource Information System? | eHow - 0 views

www.ehow.com/ource-information-system_.html

HRIS advanages of HRIS

shared by Jia Kim on 27 Nov 13 - No Cached
  • HRIS is a database or a combination of databases that share information.
  • HRIS has three basic components
  • employee information, payroll and benefits.
  • ...6 more annotations...
  • core business functions of an organization's human resources department
  • HRIS simplifies reporting and management decision-support activities
  • These systems generate reports and documentation required by state and federal agencies, such as the W-2 Wage and Tax Statement, the Equal Employment Opportunity Commission EEO-1 Employer Detail and Summary Report, and the Department of Labor's Illness and Injury Report
  • monitor employee grievance and performance issues
  • HRIS program will allow for data sharing and integration with other essential business systems, such as finance and supply-chain management.
  • HRIS also links a company's human resources department with its managers and employees
  • Jia Kim on 27 Nov 13
     
    This article is about the advanages of HRIS in the organization. Human Resources Information System(HRIS) is a database or a combination of databases that share information related with human resources in the company. HRIS has three basic components such as employee information, payroll and benefits. These represent the core business functions of an organization's human resources department. The HRIS has several advantages as following. First, it facilitate automating and Streamlining Processes which frees up HR staff to do project work and address problems. Secondly, the system supports reporting and decision process. HRIS simplifies reporting and management decision-support activities. Most systems include a variety of standard HR reports that can be used to manage the business and plan for the future, such as, compensation by pay period and year-to-date, benefits enrollment, and employee time and attendance Thirdly, it supports legal compliance. These systems generate reports and documentation required by state and federal agencies, such as the W-2 Wage and Tax Statement, the Equal Employment Opportunity Commission EEO-1 Employer Detail and Summary Report, and the Department of Labor's Illness and Injury Report. It also help to monitor employee grievance and performance issues.
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