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This is a very interesting article. As a Chinese teenager, I can experience all the changes and development of Taobao and how it won Chinese market that the author mentioned in this article. eBay can be successful in an international market, while failed rapidly in Chinese market. Firstly we can see how competitive the online market is. After this we also want to ask why eBay was beaten in China? The author of this article listed four reasons: 1) Compared with eBay, Taobao has better marketing strategies in dealing with local market. At the beginning, Taobao promoted itself through TV ads and later used short messages, which were more popular than Internet in China. 2) Taobao has less limitations on buyers and sellers through the whole process. For instance Taobao charges no listing and transaction fees on its sellers and it's free to register as a user in Taobao 3) Products made in China gives Taobao more chances to sell goods in competitive price. 3)Taobao has better terms for its customers, which helps it o to earn a good reputation and also makes Taobao more flexible in customer service. 4) The way that Taobao lists its items are more customer centric and adaptable to Chinese customers' tastes. E-commerce can bring unlimited chances and is full of adventures. As for me, marketing skills, excellent customer service and high-tech are the same important for a company if it wants to increase the share of market and makes profit. Taobao can be set as a good example in e-commerce history.  

This article suggests that consumers now purchase in a more customized why with new technologies offered through applications and data plans through consumer's phones, tables and laptops. Airline consumers have recently changed their purchasing habits to choices such as in-flight WiFi, priority boarding, premium seating, meals or doubling their miles instead of the traditional schedules and fares. Airlines have veered to selling these types of customized travel services through direct selling to consumers and have eliminated the use of global distribution systems GDS. Airlines have found that the use of GDS's are more expensive to both the airline and consumer and that GDS's technology has yet to evolve to enable the kind of customer-focused and customized shopping that other industries have embraced. Now GDS's has ask that the Department of Transportation DOT to protect its market dominance by having DOT force airlines to give them, free of charge, the ability to sell options services as checked bags, seat upgrades or club access. Airlines believe that consumers should know what the are paying for.

This article claims that GDS systems are actually limiting consumer choices. The author suggests that using new distribution technologies that connect us directly to reservation systems would be better for consumers because it provides them with all the choices the airlines can offer, without the extra charge. Purchasing a ticket through GDS is three times more expensive than purchasing the ticket directly. Airlines, which aim to support consumer choice and transparency with its customers, try to tailor travel options to accommodate a passenger's individual needs. However, GDS opposes this movement by urging airlines to use outdated equipment that requires its due fees, which in turn raises the cost of travel for consumers.  

After September 2011 alot of changes have occured in airline and airports throughout the world. TSA has purchased, trained, and introduced innovative machinery that can easily detect authorized items inside luggages. The US governement have spend alot of money also to simply protect the nation from terrorists and any form on violence especially in the hospitality and tourism industry. Alot of th airlines have changed the way they used to operate before the attacks; for instance food is no longer served on airplanes, and more fees are charged for luggages and definitely more screening in airport terminals. The introduction of air marshalls and new machinery have definitely changed the perspective of traveling nowadays, travelers have to wait longer to be screened and to even get out of the plane after the plane have landed at its destination. On a positive note, everything that have changed is for our own safety as citizen of the US and i personally believe moew things should be implemented if it can only improve the way we are being protected.

"A standard POS and credit card system would have set me back about $5,000-$10,000," says Adam Schneider, owner of Little Muenster. "But, like a lot of people, I already had an iPad." Schneider downloaded Square Register, bought a receipt printer, and was in business for a few hundred dollars. He says a major selling point was Square's portability-Little Muenster is a popular vendor at NYC foodie festivals throughout the year-and the swipe fee. The existing credit card system is obscure, because the fees are not upfront or fixed. The amount that flows into a merchant's account after a transaction depends on the brand of card, the issuing bank, and the rates set by an outside merchant processor, and the money may take five to 10 days to process. Square threw the circuitous accounting equation out the window. The flat 2.75 percent fee and the rest goes into a merchant's account the next day. Convenience with quick service solution at ease.

So, for the consumers that are used to booking their vacations by themselves, I don't think this article applies to you. For the ones that are trying to save money by not going through a travel agent, I think thesis the article for you. A study conducted by AH&LA shows early signs that almost 2.5 million bookings for hotel properties made online through "fake websites" are being accounted for. This is a huge security issue. Consumers are booking their travel thinking that they are getting certain room types, ample amenities, amazing discounts, and good deals, but turns out they are just getting scammed. Other then not making the clients happy, this also hurts the reputation of the hotel property because when things don't go our way or something happens, we tend to blame the property. And in today's society, most take to the internet to voice their opinions in addition to speaking with the hotel; and bad word-of-mouth is the last thing our industry needs. Also, this can lead to loss of revenue. The survey stated that 56% of customers prefer to book directly with the hotel. It is always recommended to book directly through the property themselves, but for the new guys, how are they supposed to differentiate the difference between real and fake websites? 

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.

Travel Tripper launched Metasearch Direct, an e-commerce platform that allows hotels to send their rates directly from their CRS to Google Hotel Ads. Independent hotels benefit from this platform because it allows them to provide real-time pricing updates with high exposure in Google ads, and drives traffic their site, resulting in more direct bookings. Hotels are able to save money on fees because they pay only for direct bookings, as opposed to click counts.

This article contains an interview with the CEO of the payments technology company Affirm, Max Levchin. Affirm, established in 2012, is a payment technology firm that allows for travelers to pay for trips via a monthly payment plan. The company fully pays the travel provider and then is responsible for collecting the funds from the traveler. The payment does not need to be paid in full prior to travel. Levchin says that this product is attractive to companies because airline and hotels don't have to worry about interchange, processing fees and fraud. It benefits consumers because they are able to book early when prices are lower instead of "saving up" to book closer to the date of travel, when the trip is more expensive. They have seen an increase in advance bookings with Affirm for trips over $250. He suggests that this will disrupt traditional travel industry e-commerce and make travel more accessible.

This article states and summarizes the release of recent study findings related to Tourism Research-Tourism Management. According to news reporting, the research states that Asset-Light & Fee Oriented Strategy (AFLO) has received widespread attention and implementation across service sectors like the hospitality industry.

There is a new trend of diners opting to pre-order food through their mobile app and go themselves to pick up the food. This allows them to lower the cost by not having to pay delivery fee, and service charge. It also allows for the food to be more consistent and give them the flexibility to eat wherever the customer prefers either in the restaurant or out. About 20% of diners are using the pre-order option (32% millennials), however only 26% of establishments have the mobile POS technology but 59% of restaurants surveyed plan to add in the next year. About 18% of restaurants have technology allowing customers to order at the table, however 52% said they will add this in the next 2 years. Restaurants are starting to react to the trend from consumers where 53% of millennials mention that the restaurant they choose will base on the digital technology they have including online menu, read reviews, look at Instagram pics, and post their own.

Delta Air Lines and Sabre will be working together on a multiyear deal to improve indirect distribution channels. As Jeff Lobl said, the intention is to unlock innovation and reward investment as well as enhance the customer experience. Traditionally airlines pay a flat fee to GDSs but this model will be based more on what is being sold.

This article discusses how travel agents are starting to increasingly use GDS to book for their clients. The article also talks about how people are looking for the best price and care more about that than the advertisement. Hotels want their guest to direct book through their website in order to not have to share profits with others. Hotels pay fees to be on these websites and travel agents are starting to use it more. The article emphasizes the role that GDS has come to evolve to.

This article is about how Resy's reservation platform has been addressing and redirected restaurant needs during COVID-19. It has specifically made adjustments in offering relief on fees and billing, aggregating resources, and highlighting takeout/delivery options.

Fintech startup company, Banked, has partnered with British Airways to provide a new and effective form of payment for their airline loyalty members to pay for online purchases using BA Avios. BA Executive Club members can now use their bank account via Banked and merchants will be able to offer the Avios option at a fraction of the cost of credit card processing fees. (2-4% vs 0.1%) This new partnership will lead to increased customer loyalty, conversion rates along with higher average order value. Banked is currently integrated with may of the largest banks in the United Kingdom, including Barclays and HSBC. Banked CEO stated that 78% of consumers in the UK are making purchasing decisions based on loyalty points, which will extremely increase customer loyalty from the British Airways Executive Club members. In my opinion, this is an excellent way for loyalty club members, especially airline and hotel rewards members, to be able to utilize their points or miles that have been of no use due to the pandemic. This has already been integrated in the United States through Chase, American Express, and Citibank where rewards points can be used for purchases online and even on Amazon. This was the correct step for BA because they will be able to retain loyal customers until travel restrictions are lightened.

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.

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

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.

A question we have all been asking is how can our data that we share be safe with businesses as technology continues to improve and progress into the hospitality industry. Biometrics are biological measurements or physical characteristics that are used to identify individuals like fingerprint mapping or facial recognition. Marriott hotels in China are already using facial recognition technology for checking in and charging the room fee and deposit to the guest's account. Many hotels also use biometrics for their IT operations. The closer connection between biometric methods and the user the security is greater. A person's phone is effectively safer than a hotel's facial recognition system and provides increased security of data.

Alex Canter, CEO of Nextbite and Ordermark explains the difference between virtual restaurants and ghost kitchens. Both exist online, with no physical storefront. A report by Statista predicted online food delivery revenue will reach over $324 billion in 2022. Virtual Restaurants - only exist online, work with existing restaurants and kitchens. Helps increase productivity of their kitchen and labor, increase revenue and margins. Ghost Kitchens - Physical kitchens designed off-premise (pick-up and delivery only). Some have 30 or more individual commercial kitchens for rent and one area for delivery drivers to pick up. These kitchens house many brands and new local restaurants for a rent fee. Virtual restaurants require great marketing strategies, such as digital marketing, SEO, social media, professional photography and menu design. Some of the strategies suggested for success are utilising and being part of apps, focusing on the reviews, setting up a website.

Companies should forecast differently when it comes to paying for technology. Instead of using a big chunk of change (Capital expenditure) investing in equipment it only uses just about 20% of the time, it can consider consider alternative, cloud based technology for a monthly fee (Operational Expenditure) This frees up money, time, and resources necessary for creativity and innovation in the company.