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ppate011

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

  • 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
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  • 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.
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    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.
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    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.
Jiaqi Xu

Travel Agent Increase Use of GDS to Book Hotel Room - 0 views

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  • Travel Agents Increase Use of GDS to Book Hotel Rooms
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  • "Travel agents are increasing GDS hotel use, and have once again confirmed their confidence in GDS Shopping and Booking Displays," remarked John Hach, Senior Vice President, Global Product Management at TravelClick. "As the GDS channel produces one of the highest average daily rates of any booking channel, there is a huge opportunity for hoteliers to influence travel agents through the GDS at the point-of-sale."
  • "This survey definitively shows that promotional messages are not only an excellent way to reach travel agents, but also a valuable sales catalyst,"
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    This article is a good one that demonstrates how GDS are now more often used than times before. The article states that the 2011 Global Travel Agent GDS study demonstrates how important GDS platform and shopping Displays are to the travel agents. They stated the 84 percent of those who took the survey stated that they are using the GDS just as much or even more than they did in the pass and 35 % of these stated that they were using it more than they did in the pass. The article explained how these numbers have greatly increased since 2009 where only 26% agents admitted that they used the GDS systems more than before. This study is 2011 reaffirmed Travel Click's projection, which was that GDS hotel bookings would surpass %50 million in the year 2011. This was far more than that of 2010. The article goes on to explain how the GDS will improve the booking and services of the industry all around. Furthermore, the article went on to explain a worldwide survey conducted for agents who were among the largest GDS in the world and some 495 responses were collected. The survey was conducted by Phoenix Marketing International, which is and independent marketing research firm Travel agents were indicated that promotional messages were effective and prompt during bookings and 66% of these agents request additional information about it. While, 68% of these agents looked into the GDS for more information. After this survey was complete the agents who were aware of promotional messages, 46% of them made North American bookings within 3 months as a result of the promotional messaging and 44% made non- North American bookings. The survey itself shows that promotional messages were and excellent way to get the agents interested. In the article it is quoted how the promotional messages acts in a chain reaction to reach the agent and then the customer, which allows sales all over the world.
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    GDS provides a perfect virtual marketplace for travel inventory sellers such as hotels, airlines, and car rental systems to showcase their wares to a global Internet travel audience. The GDS is a natural outlet for hotels, resorts, and even smaller inns that want to increase revenue and online marketing exposure. As the GDS channel produces one of the highest average daily rates of any booking channel, there is a huge opportunity for hoteliers to influence travel agents through the GDS at the point-of-sale.
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    Yes, GDS is of great importance for tourism development. It provides such a huge market of tourism information for customers, airlines, hotels, travel agents and any parts included in the tourism. Someone said that GDS will end travel agent, however, in my opinion; they have their own advantages and will supplement each other in the future.
kcamp110

GDS Hotel Bookings Rise in 2017 | TravelPulse - 0 views

  • GDS Hotel Bookings Rise in 2017 | TravelPulse
    • rnobl005
       
      This article is rather short but I thought it complemented the discussion post for this week. Travel Click surveyed 900 travel agents worldwide and discovered that hotel bookings will surpass 68 million reservations by the end of 2017 thanks to Global Distribution Systems. In 2016 the estimated number of bookings was 66 million, meaning GDS is gaining in popularity as a means of securing travel arrangements even today. Like the Whitepaper suggests, Sabre, Amadeus, and Travelport are the 3 major companies supporting this service. I thought it was interesting that the article brought up the issue of "rate parity" as a means to distinguish one hotel from another. Travel agents are less likely to book a hotel if the hotel is offering different rates across platforms, especially if the GDS rate is higher. Again, bringing this article back to the discussion questions, this is evidence that there are benefits to using a travel agent when planning a trip. They have a comprehensive knowledge of the market at their disposable compared to the average person searching for the best deal on their own. Towards the end of the article the author brings up that travel agents are not using Airbnb because the platform isn't integrated into the GDS - which was not surprising.
  • travel agents are using the GDS to make a record number of hotel reservations. 
  • 68 million reservations
    • rnobl005
       
      I think this figure them mention is slightly misleading though. In context this sounds like the total number of reservations made using GDS systems, not necessarily the number of reservations made by travel agents.
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  • increase of more than 2 million reservations from the number of bookings generated in 2016.
    • rnobl005
       
      Regardless of who is responsible for the amount of bookings, I think an increase of 2 million bookings in one year is evidence that GDS is still an extremely profitable revenue stream for the hospitality industry.
  • One of the most important things that travel agents want when it comes to hotel bookings on the GDS is rate parity. Hotels that don’t offer the same prices on the GDS that they do elsewhere are not looked upon favorably. 
  • Hotels that offer great amenities are also among the ones that travel agents book the most. 
    • rnobl005
       
      The most appealing amenities mentioned in the article are swimming pools, free parking, airport shuttles or transfers, hotel gyms and early check-in/late check-out. Hoteliers should take this information into account and find ways to highlight these features at their properties.
  • global travel agents rely on the GDS as an essential operating system for conducting hotel research and booking reservations
  • Travel agents continue to rely heavily on the GDS for booking and shy away from non-traditional accommodation options such as Airbnb because they are not available on the GDS.
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    The article talks about the use of GDS and its importance in the current Hospitality World. It shows a study which refers GDS as the most important booking tool for travel agents, citing record numbers in booking in 2017
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    Based on the reading GDS assist and has raise the profit margin for hotel across the board. Hotels are more profitable due to this feature .
Yu Zhai

Why non-GDS hotels are 'in-thing' for business travel buyers in 2012? | HotelHub - 0 views

  • Our own internal bookings report for HotelHub shows almost flat growth in GDS hotel bookings in 2011, while non-GDS bookings grew at a much faster pace.
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    This article identified some factors that happening in the market which drives a trend for increased bookings through non-GDS hotels. Business travel buyers are increasingly looking at newer opportunities to cut travel costs. Business travel slowdown imminent, The Global Business Travel Association forecasts that the business travel growth is expected to slow in 2012. And business-travel growth will outpace anticipated GDP growth, despite uncertainties in the economy. Rate negotiation process is getting increasingly tougher With a declining market demand, hotels try hard to remain profitable, and have toughened the rate negotiations with buyers. Many are exploring alternative strategies to generate savings from their hotel programs. Some buyers are considering alternative negotiating strategies to derive savings. Due to the demand for wider range of rates to aid policy compliance, corporates are looking for a better value proposition in using hotel aggregators. Hotel aggregation offers key value proposition The latest versions of HotelHub indicate that hotel aggregation offers a major advantage in corporate hotel reservation process. GDS firms and non-GDS are realizing the gap, and aggregation makes Travel Managers save lot of time and cost in servicing booking requests. This article identified some factors that happening in the market which drives a trend for increased bookings through non-GDS hotels. Business travel buyers are increasingly looking at newer opportunities to cut travel costs. Business travel slowdown imminent, The Global Business Travel Association forecasts that the business travel growth is expected to slow in 2012. And business-travel growth will outpace anticipated GDP growth, despite uncertainties in the economy. Rate negotiation process is getting increasingly tougher With a declining market demand, hotels try hard to remain profitable, and have toughened the rate negotiations with buyers. Many are exploring alternative strategies to gener
chadidscha

GDS Technology : Overview, Pros Cons and the Future Ahead - 0 views

  • If you want to gain better marketing exposure without shelling out for additional marketing costs, investing in a GDS is a wise decision. The system places your property in front of numerous clients without dipping into your marketing budget
  • - GDS also reap the benefit of reaching untapped segments for your property.
  • Another perk that comes with a GDS is the ability to update product information in real time.
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  • As the industry becomes more collaborative and more inclusive, so does the technology. Some GDS firms are recognizing the need to include non-GDS, independent hotels in their searches in order to offer a better range of choices.
  • In addition to the positive economic outlook, the technology of GDS itself is proving to be a powerfully tool. With greater reach and increased visibility, GDSs make the jobs of agents easier, and in an information- based industry, ease of work is a high selling point. The GDS will have many more obstacles to face in its evolution, but the future looks bright for this inclusive booking software.
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    The article discusses the pros and cons of the GDS. It also addresses the role it plays for helping smaller businesses in standing out to a large group of potential customers. Furthermore, the GDS has gone through many changes since the 1970's, but it is still thriving and overcoming new obstacles today.
agarc521

Hospitality Technology Articles: Hospitality Marketing Through Global Distribution Systems - 1 views

  • In an industry not renowned for the prompt embrace of technology, electronic marketing and product distribution have enjoyed uncharacteristically speedy acceptance by the hotel, car rental, cruise line, and other hospitality companies.
  • GDS marketing automation gained its most recent, and possibly most powerful product presentation advance with the introduction of seamless connectivity
  • Responding to the need for greater flexibility, hotel CRS managers expanded the inventory control capabilities of their systems to allow selling against an allocation of rooms.  Sales controls such as closed-to-arrival, minimum length of stay, and sell-through were also added.  More recently, many systems have been further enhanced to provide central reservation offices with full inventory data, with the central system having the same availability information as the hotel so that the CRO can sell down to the last available room without fear of overbooking.
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  • o reduce costs and further increase their bookings, airlines began installing computer terminals in the offices of their most productive travel agencies.  Airline managers understood it would be less expensive to have travel agents book the reservations directly into the airline systems than it would be to hire additional staff at airline reservation centers.  They also knew that travel agents were more likely to book reservations on the airline that supplied the GDS terminals.
  • In its early years, productivity through global distribution systems was low and constituted a very limited portion of each hospitality company's centrally booked reservations.  A consistent upward volume trend has seen that situation change. 
  • In coming years seamless connectivity offers the prospect of delivering the full functionality of supplier systems, from access to frequent traveler files and profile data to multi-media brochures and virtual reality property tours, to every GDS user's terminal.
  • The challenge to suppliers -- hotel companies, car rental firms, cruise lines and the many other travel services -- is to develop and implement marketing automation programs that effectively address this electronic marketing and sales opportunity.
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    This pretty much what we have discussed in class along with the history of  the way hospitality companies have grown so much since the 60s. 
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    In an industry that is constantly evolving, the GDS remains in a constant in revenue generation, as well as marketing abilities. Seamless connectivity supplies full functionality on virtually all levels in the travel industry.
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    This article describes the development of the GDS, and also introduce its role as a non-air hospitality services marketing channel. The authors introduce the evolution of GDS, and show some points about how hospitality marketing through GDS.
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    This article goes into depth with the development of the primary electronic distribution channel. Surprisingly, as early as the 1960's travelers and travel agents where booking reservations via letter, telex, or telephone. Most of the reservations for airlines, hotels, and car rentals were conducted via telephone. Because of such an increase in demand of the service, airlines installed computer terminals to reduce cost and increase bookings for the airlines. Airlines believed it would be cost efficient to install such system instead of hiring extra staff. The airlines also predicted that travel agents would reserve more with the airlines that supplied the GDS terminal, which in fact turned out to be true. After, the travel agents became heavily comfortable with the system, they noticed that it could also accommodate to bookings for hotels, car rentals, and travel services. The potential of the travel distribution was obvious and many non-air travel companies became major participants within the system.
dstro007

Booking trends: Don't ignore impact of GDSes - 0 views

  • Hotel bookings through travel agents are expected to reach a record high in 2015 and have held their share of the market despite dire predictions for years.
  • TravelClick projects 2015 to be a record year for bookings through global distribution systems
  • TravelClick is projecting 62 million bookings through GDSes in 2015, which is up from 61 million in 2014 and 42 million during the depths of the recession in 2009.
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  • Travel agency bookings captured the highest ADR in North America ($189) and internationally (€198).
  • a total of $12 billion in revenue was booked across all channels in the second quarter in the top 50 global markets, encompassing 69 million roomnights
  • GDS bookings covered 16.3% of those bookings.
  • GDS bookings have managed to hold their share of transient bookings through the past two years
  • Mobile booking is not a prediction; it’s reality
  • If you aren’t ready for mobile booking, then you’re already behind the curve
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    Don't sleep on the GDS systems. The are making their mark and proving to be an important asset in the process of making a booking. Whether it is a hotel, car, cruise, or airline reservation, the GDS systems got you covered. Being that nowadays, travel agent would use this system for their non-tech savvy clients, bookings are expected to be at a record high this year. In a report generated by TravelClick, out of the $12 billion dollars generated in the second quarter alone, GDS systems accounted for a little over 16% of that total; the highest percentage came from direct bookings, of course. So at least we can count on the use of these GDSes to help turn a profit within our industry. 
henderson_goh

5 Advantages Of A Global Distribution System (GDS) - STAAH Blog - 0 views

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    Highlights: -Reach Market Segments Globally -The GDS can help hotel managers uncover new market segments to promote their products. -More revenue -Growth opportunities -more agents are realizing that this is the best way to easily connect with hotel properties from around the world. -Instant updates -The agents have access to live rates and availability, and they can easily book rooms for their clients. -Grow The Lucrative Corporate Segment -GDS is an important mix of larger properties' distribution channels. -Saves time and will lead to greater exposure
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    This article talks about the advantages of hospitality companies involving in Global Distribution Systems (GDS). One of the obvious advantages is that the GDS will be able to help hospitality companies reach their market segments globally, which will lead to more revenue and growth opportunities. The GDS also gives travel agents instant updates, as they will have access to live rates and availabilities. As so, it will increase satisfaction of their clients. Furthermore, the GDS will help travel agencies and travelers save time, as the GDS tends to "bundle everything together." The GDS will likely be more useful for non-seasonal travelers, as booking everything a la carte might be a hassle for them.
irinatroitskaya

United Signals It Wants a Better Deal with Reservation Middlemen - Skift - 0 views

  • The reservation services that middlemen technology companies provide to travel agency networks and online travel agencies are a particular sore spot for airlines.
  • Overall worldwide, airline lobbying groups say they pay $7 billion in fees a year to these reservation systems.
  • In the past, non-standard products like that have posed challenges for Sabre, Amadeus, Travelport, and Travelsky to display and distribute to travel agencies.
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  • But beyond monetary concerns, there were antitrust issues at play, with the airlines contending that Sabre had a stranglehold on the domestic U.S. market
  • The distributors say they can accommodate technological requests from the airlines, despite the public skepticism expressed by some airline executives.
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    This article demonstrates the way how relationship between the airlines (United) and the technology companies which serve as middlemen is build. According to the estimations, the airlines pay to the gds's about $18 per round trip ticket reservation, which results in 7 billion in fees that are payed to the gds's annually. The air companies consider these fees unfair in regard of the gds' performance. To compensate for these payments as well as to promote direct bookings, the airlines (namely, Lufthansa) have added a surcharge for any external bookings. GDS's, however, fight back and start litigations against Lufthansa. The decision on this case will either stop such a practice, or force other airlines to follow LH and add surcharges for gds's too. Another problem that airlines experience with GDS's is the presentation of non-standard products that the airlines offer. For example, it took the GDS's several years to correctly display the Ecomy Skycouch by Air New Zealand (buy 3 seats at the price of 2 to sleep across all of them during the long-haul flight). United is going to introduce its Basic Economy Seats with no carry-on luggage and no qualifying miles. However, they are not sure that the GDS' s will be able to display this product to the customers in a proper way so that they could fully understand what they are buying. The reason for that is that GDS's are mainly reluctant to invest in technologies that are focused on product differentation. In this regard, it becomes more difficult to compare fares since different set of services is included in different products. Thus, the customers might be mislead. Moreover, there are antitrust issues with the gds's. The airlines claim that Sabre has a stranlehold on the US domestic market. Such position allows it to ultimatum the airlines and voluntary decide on search display order. The airlines expect the GDS's to be more prone to partnership ralations. This would imply the fair compensation for what they add to the
Cecilia Lucas

Travel retailers at risk as non-GDS business rises - 0 views

  • The increasing number of travel agents making bookings outside the traditional global distribution systems is driving the need for simpler payment systems, according to a new survey
  • found a fifth of businesses make more than 50% of their revenue from non-GDS transactions,
  • travel agents and suppliers believe their payment systems are completely adequate, with the biggest bug-bear named as booking fees such as administrative and credit card surcharges.
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  • meant payments transacted outside the GDSs were being handled manually or with disparate systems, leaving room for error and unreliable audit trails.
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    1/5 of travel businesses make more than 50% of their revenue from sales outside the GDS booking system, and as they do this, payment transactions are more unreliable and vulnerable opening bigger risks to the customers
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    Travel Agents are now faced with the situation where they have to utilize all channels to stay afloat. The market has gotten so competitive with more airlines going the direct booking route. Travel Agents now have to be flexible though they face the risk of multiple accounting systems. This could potentially increase the cost of doing business and they may have to input information in multiple system which of course per article may lead to mistakes. GDS may need to look at their approach and some of the fees charged if this trend continues.
miamigol

Benefits of New Airline Distribution Tools Growing More Clear - 1 views

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    This article is about IATA's (International Air Transport Association) New Distribution Capability (NDC) that will give Airlines GDS systems more flexibility in delivering fares and inventory. Right now, the top 4 GDS systems used by major carriers are Amadeus, Galileo, Sabre, and Worldspan. The airline I work for uses Sabre with a QIK overlay and, based on personal experience, the implementation of NDC is long overdue. It will make it especially easier during irregular operations (cancellations, delays, misconnections) when we need fast and accurate access to other airlines inventory. Since most airline passengers travel only once every few years, the NDC will also emphasize the role of travel agents. They will be provided with enhanced tools to access more accurate inventory, better routing, fares, and packages that may be unnoticeable to non-frequent travelers when they book directly on the airline's website or OTA's. Furthermore, it will allow airlines and travel agents to collect data about passenger's preferences in order to provide future tailored business or leisure packages.
ccpanther88

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

  • 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
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  • 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.
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    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.
Krystal Jost

RG Bridge Solution Helps PMS, CRS Vendors, Hotel Chains and Internet Booking Engines (I... - 0 views

  • RG Bridge enables CRSs to look beyond their established direct connects by building a long tail of distribution, without compromising on the channel portfolio.
  • “As more and more systems emerge in the industry ecosystem, the ability to provide a single interface to update information across all systems is becoming the key differentiator between a smart technology partner and traditional vendors.”
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    RateGain is a company that offers services that allow hospitality establishments to retain a "seamless" distribution with central reservations systems, global distribution systems, and property management systems. RateGain claims to enhance growth and offer support for revenue management decisions. Utilizing a central reservations system, a global distribution system, and the property management system, from a hotel standpoint, seems like you are gaining a ton of additional business and additional rooms sold. But what happens when the hotel sells out, and the inventory continues to flow in, overselling the hotel, upsetting the guests and creating an angry mob in front of the front desk, blaming the hotel for the issue instead of the lack of seamless communication between all of these systems providing this revenue? That is where a service such as RateGain comes in handy. This article focuses on the issues that have been identified regarding electronic distribution, including updating multiple system with rates and availability, manual entries, lack of synchronization between the systems, non-delivery complications with reservations and information, and lack of information provided by the source channel. Rate Gain notes these challenges and focuses on ways to improve and bridge the gaps between the services, to provide a seamless revenue gaining opportunity for an establishment. The article continues to explain how their RG Bridge implementation enhances these systems and eliminates these issues utilizing two way connectivity and allowing the hotel employee to work with channels to generate demand. It also states that they customize each connection to live up to the expectations and needs of the hotel, so that nothing will be lost or not understood. This service is a great investment for a company that continues to have these communication issues with their systems. Sometimes with the lack of communication between the global distribution system, the pr
anonymous

article_32_vol_5__1_.pdf - 1 views

shared by anonymous on 05 Jun 20 - No Cached
  • Much has changed in the business world since the birth of technology and the subsequent discovery of the world wide web (www) in 1989.
  • Much has changed in the business world since the birth of technology and the subsequent discovery of the world wide web (www) in 1989.
  • According to South African Tourism (2015), more than 180 million bed nights were sold in 2015, making the hotel industry an attractive client of e-commerce.
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  • suppliers and customers meet in a virtual space to perform transactions using Internet technology as it has the potential to add substantial value to business operations and competitiveness of a business.
  • scene of the famous lion-buffalo-crocodile battle watched more than 75 million times on YouTube)
  • e-commerce has not only
  • changed the way business is conducted, but has increased the revenue of organisations tremendously, in particular that of the travel and tourism industry.
  • The top three visited travel sites include Booking.com, Expedia.com and Hotels.com.
  • online travel booking is the specific business-to-consumer (B2C) transaction in the context of online tourism
  • right: © 2016 A
  • understand how the various online sales platforms interconnect.
  • the internet consumer of today assumes all businesses worthy of trade have a website;
  • it is not enough for hotels to rely on their web pages alone for room sales.
  • An aspect of e-commerce revolves around how social media affects a hotel’s online presence, and how it is used as a tool for gaining a notable share in the e-commerce market for hotel room sales.
  • In an increasingly competitive market place, tourism products require an effective distribution strategy for a firm to reach its target tourists and local markets
  • Although the statistic does not identify the specific modes used to make room reservations, it can be presumed that electronic sales made up a considerable percentage as sales method.
  • The Internet is an ideal platform for the tourism industry
  • 1) they are intangible, 2) their production and consumption cannot be separated, 3) they are perishable, and 4) they are seasonal
  • survey conducted in Hong Kong of 249 leisure travellers, 80% searched for hotel information using Web tools, with more than half making their bookings through hotel host websites or third-party websites
    • anonymous
       
      They wouldn't be able to gather this information on technology unless they had the proper technology to do so.
  • Social commerce should be considered broader than the act of sharing shopping experiences with others, as it has challenged and redefined traditional vendor-push business models and marketing strategies (Gonçalves Curty & Zhang, 2013:260-261).
  • E-commerce allows the tourism consumer to purchase tourism products and packages online and act as his or her own travel agent by building personalised travel packages and eliminitaing the need for traditional processes
  • From a hotel business perspective, e-Procurement is a good example of the innovative use of technology in the lodging industry
  • 2B
  • E-procurement can be defined as a business-to-business (B2B) tool that supports the buying process
  • implementing e-procurement has become an important enabler for achieving a flexible and responsive supply chain.
  • An example of e-procurement or a business-to-business transaction would be a hotel selling its rooms to OTAs on a wholesale or commission basis.
  • e-commerce in the modern tourism and hospitality industry is important because the Internet is the lowest cost hotel-booking channel, most travellers research hotel reservations on the Internet, and social media and online hotel reviews are an increasingly important decision factor.
  • there are three most common retail sales channels – brick-and-mortar, catalogue and the Web – across the elements that characterise the shopping and business ownership experience
  • Travel services are categorised into Accommodation and Airlines, as these two components constitute a large part of the hospitality industry.
  • This research study is focused on room sales, therefore the distribution channels used for this purpose will be explained, namely, Online Travel Agents (OTAs) and merchant sites.
  • Today, e-commerce focuses on profitability.
  • challenge for retailers is to attract the attention of the digital natives (consumers who have grown up in the digital world) and persuade them to spend more, as well as to attract digital immigrants (consumers who are presumed to resist new technology or at least have trouble accepting it) to this way of shopping.
  • Social media can increase communication for a website and create brand awareness.
  • a social network is a virtual community, profile site or website on the Internet that brings people together in a central location, to talk, share ideas and interests or make new friends.
  • platforms such as social network services (
  • is one of the main reasons for advancement in Web 2.0 technologies and developments in e-commerce.
  • social commerce providers started their businesses by combining group-buying with selling discount coupons offered from their partners over the Internet.
  • E-commerce mainly helps in the generation of leads, presenting information about the tourism product to the customers, and facilitating the transaction process electronically
  • consumers have become the storytellers and are the new brand ambassadors.
  • social media is driven by word-of-mouth and if done properly can improve positioning in the market
  • e-commerce is still new. Getting (2007), maintain that most online communities are free and are growing at a rapid rate.
  • An online rating site is a system of ranking places, products and services via customer reviews based on past experiences.
  • TripAdvisor is classified as a meta-search engine, which is defined by Webopedia (2015) as a search engine that queries other search engines and then combines the results.
  • the prevalence of traveller reviews had a significant impact on the online sales of hotel rooms and that hotel managers should seriously consider the impact that online reviews of their hotels on these websites have on the consumer.
  • Online channels allow the potential customer to see the location details and compare hotel prices easily, as well as read online reviews which have a wider reach and are less ephemeral than traditional word-of-mouth reviews.
  • Figure 1 further illustrates the direct booking channel guests have to hotels via the Internet.
  • Reservation System (CRS) in the 1960s to the Global Distribution System (GDS) in the 1980s and the advent of the Internet in the early 1990s, the tourism industry has always been confronted with the rise of new technological developments
  • rapid growth of online travel agencies caused traditional indirect distribution channels through tourism intermediaries to decline
  • The Internet has become an integral part of everyday life. In order for businesses to be sustainable, they need to have an e-commerce presence
  • it is a service that can be readily offered to global markets and it can become a trade platform joining suppliers and buyers from around the world
  • with technological advancements, firms are increasingly reaching out to their customers through a variety of channels such as e-commerce, m-commerce and brick-and-mortar establishments. Heinemann and Schwarzl (2010:1) contend online retail today is taking place at a higher level of evolution than in the initial years of e-commerce.
  • there are technical and non-technical aspects associated with e-commerce
  • How can hotels compete in a digital world and what will their future business models look like?
  • an intranet as a private network, operated by a large company or organisation, which uses internet technologies, but is insulated from the global Internet by a firewall (a system designed to prevent unauthorised access). An extranet, however, is an intranet that is accessible to some people from outside the company
  • studies in the tourism and hospitality arena have indicated that ICT is a tool particularly suited to this industry for a variety of reasons.
  • The Internet has become an integral part of everyday life. In order for businesses to be sustainable, they need to have an e-commerce presence
  • The hospitality industry is an ideal trade for making use of e-commerce and the social web.
  • Reputable booking sites such as Booking.com, Expedia.com and Tripadvisor are visited by over 300 million online visitors each month.
  • Internet users have become demanding in their expectations of company presence online.
  • “if I can’t find enough information on your hotel it’s probably not a good choice.”
    • anonymous
       
      BOTTOM LINE
  • E-commerce is expected to reach global sales of $1.5 trillion by 2018 (Statista, 2016), and therefore hotels in CT will need to increase their presence on the internet, not only on booking sites, but also on the social web in order to receive a sizable share of electronic sales.
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    This article talks about where the internet has brought us in the business world and where it is taking us. There are other articles included to support the idea that hospitality businesses need the internet inorder to successfully reach out to and market toward customers. Along with the idea that if a business does not have an online presence,that, is an untapped stream of revenue. As well as the combined business efforts that go into delivering a flawless product to its customers via the web. There were two case studies that took place in order to understand the role e-commerce has played and will potentially play in the hospitality industry.
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