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anonymous

To The GDS's: Either Evolve Or Dissolve -- It's That Simple - Aviation Articles and Commentary - Swelblog / Swelbar on Airlines - 0 views

  • In the early years following deregulation of the airline industry, GDS were largely owned by airlines and used to provide information to intermediaries to sell tickets on particular carriers. 
  • In fairly short order, the government stepped in to regulate the bias.  As a result, the GDS
  • became a tool of the travel industry to sell a service.  Today, the airlines pay an intermediary to distribute their product – and they are paying a price much higher than the prevalent transaction costs.
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  • But the intermediaries don’t pay the airlines for the airline-created content they use to lure customers to their respective websites so they can sell hotel stays and rental cars. 
  • Airline travel is now available for purchase on multiple channels via the internet, including through the airlines’ own websites.
  • airlines are looking for ways to differentiate themselves by offering additional products and services to their customers that enhance the travel experience. This information is something the GDS cannot provide today without a significant investment in their systems.
  • There are other factors at play here as well. First, airlines know their particular customers better than the government or the GDS. Plus; the GDS haven’t evolved as the industry has dramatically changed.   Today’s GDS force the airlines to compete only on two factors; service and price.
  • The airline industry has found new ways to generate revenue by offering customers products they value and are willing to pay for
  •  
    This article talked about the development history and facing challenge of GDS in the airline industry. It also analyzed the changing role of GDS in the travel industry, and how the airlines tried to be survived by providing new products and services to generate more revenue. Finally, the article came to the conclusion that the airline industry cannot be duopolists nor monopolists.   
Yaping Li

The Most Effective Online Marketing Strategy for Independent Hotels (Part 1) | E-Marketing Associates - 0 views

  • The best online marketing strategy is one that effectively enhances each online marketing component to its fullest potential.
  • The best way to fully augment a hotel’s web presence is to keep all of its online marketing components updated and consistent.
  •  
    This article introduce a new online marketing product that not only can help the hotel reduce cost but also improve the hotel's online presence which results in an increase in direct bookings, less reliance on 3rd party intermediaries, and the best ROI. This new product can up-to-date the hotel's information that will attract more guests that put a hotel miles ahead of the competitors. It also offers an option for guests to choose the phrases that they are interesting. In addition, this product provides the freedom to make convenient updates for hoteliers. The hotel management team does not need the outside support team to manage the e-marketing system.
Irina Stepanenko

The Power of Email Marketing in the Hospitality Industry - 0 views

  • arketing power of the Internet in terms of reach and frequency. Nowhere is this better illustrated than through email marketing. Following the lead of the airlines, many hospitality managers are evaluating email marketing for its low cost, rapid dissemination, and measurability.
  • Following the lead of the airlines, many hospitality managers are evaluating email marketing for its low cost, rapid dissemination, and measurability.
  • Email marketing is a crucial component of the hotel eMarketing and online distribution strategy.
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  • Email gets the most attention of any hospitality eMarketing effort because intuitively it makes sense—since email can create direct revenue opportunities with past, present, and future customers.
  • By category, travel relate
  • Low cost
  • ssion-based email marketing is the second-generation email approach that goes well beyond guerilla email marketing, known as email spam.
  • Permi
  • Precision e-mail marketing is the next, third generation email approach that dynamically "reads" customer profiles, purchasing habits and history to create highly personalized emails.
  •   Reach:
  • Hotels must employ new strategies to take advantage of these opportunities to capture this Internet market. 
  • Protects brand integrity:
  • Personalization:
  • Instant gratification:
  • Rich Media:
  •   Results: Outcomes based, from knowing who opened the message, clicked on which links, how much time spent viewing each page, completed a transaction, or forwarded the email.
  • There are three main groups of email audiences: consumers (leisure or business), travel intermediaries (travel agents, wholesalers) and corporate clients.
  • Hoteliers are in a unique position to build a robust list from existing customers. Using a list built from existing customers, the conversion rates can be ten times greater than any standalone rented mailing list because the targeted group already knows and has experienced the product first-hand. In addition, the hotel can stratify the customer list by specific characteristics, communicate and offer value in the message, and send targeted and rele
  • vant mailings frequently to the intended audience, an audience that even anticipates these messages announcing hotel specials.
  • d email marketing retains a loyal audience, especially if it offers the recipient value, accurate communication, relevance, and familiarity.
  • Travel agents that use the Internet and email are exactly the travel agents hoteliers must reach.
  • Collecting the right information is essential to not confuse long-term marketing plans
  • Recent trends in email technology and services include:
  • A total email strategy addresses every aspect of the email marketing process. It's organized to leverage a hotel’s existing and future client base for ongoing and upselling opportunities. This includes matching the right messages with the intended audiences for ongoing customer relations.
  • In conclusion, a total email marketing strategy serves as a springboard to launch various email campaigns, to boost ongoing customer acquisition, relationship management, and increased bookings on and off line.  An experienced eBusiness hospitality consultancy can help you navigate and utilize the Internet to its fullest potential.
  •  
    Email marketing is a crucial component of the hotel eMarketing and online distribution strategy. The website is a key to establish interactive relationship with customers and capture client email profiles by the company. In hospitality industry, especially the travel agency frequently use the emarketing to retain the loyalty, and offer accurate communication. The permission-based email marketing is very useful and practical for sending the promotional emails. And the precision e-mail marketing used by the airlines has generated up to a fivefold increase in response rates and tenfold lower conversion costs than direct mail. The email marketing provides some benefits for hoteliers, such as low cost, accessibility, protecting brands integrity, hommization, timeliness, good visual sense and positive results. The consumers, travel intermediaries and corporate clients are the significant customers for email marketing. The hotel can stratify the customer list by specific characteristics, communicate and offer value in the message. Hotels must employ new strategies to take advantage of these opportunities to capture this Internet market.
  •  
    As this class teaches us, along with this article, " the marketing power of the Internet in terms of reach and frequency." This article in particular speaks about the advantages of email marketing. With the low cost for companies in the hospitality industry, email marketing can produce positive results form the masses. The article goes on to explain how and why email marketing have been seen to be so efficient as a marketing tool. One obvious pro for instance is that everyone uses emails in today's society. After reading this article I can agree that email marketing is a very good way to put the internet to use when it comes to marketing. My concern, however, as mentioned in the article is the control the receiver has with the emails. For instance, how many emails are too much, too frequent or just not relevant? Features today have given the consumer the opportunity to now have a bit of control over this issue as I have mentioned. I believe this may be one of, if not the best form of marketing online because it gets directly to the customer, usually requires interaction whether to the main website or further clicking for deals, and sets up a format in which sufficient information can be given.
  •  
    Many hospitality managers choose email for its low cost, rapid spread, and measurability. There is an incline to online purchasing, which means that Internet is the place to establish relationships with your customer, through email for instance. Email can be easily personalized, include only relevant promotions, and be a tool to keep in touch with your regular and new customers. Permission-based email is sent only to customers who have allowed to be emailed, thus, you are targeting people who gave you permission and who most likely are interested in your product/service. Email is also a better tool because it is cheaper and faster than regular mail. Also, it is easier to track the results, using the tools to see who opened the email, clicked on the link, etc. There are key factors to remember in order to be successful: -interactive relationships -frequency -personalize and relevance -permission-based The article provides a rationale for implementing total email marketing strategy.
Xiameng Zheng

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

  • 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.
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  • 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.
  •  
    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.
  •  
    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.
Dalton Draper

Integrating e-commerce into a hotel's overall business strategy - 0 views

  • commerce should be a compliment to every part of a hotel's operations. All staff members need to be briefed on the advantages of taking a collaborative approach to e-commerce
  • needs to understand the correlation of stellar customer service on online guest reviews and the ability of a hotel to sell its products online.
  • sales departments
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  • understand the advantages of using e-distribution channels to aid travel agents and offline sales and get involved in the process
  • But hotels are trying to use e-marketing more effectively as well as focusing on social media outlets to lure prospective customers to their direct channels
  • At the end of the day, the channels that provide the most conducive environments to consumers (i.e. price, ease of use, accessibility) will win the business.
  • What do you think is the most critical aspect of integrating e-commerce into a hotel's overall business strategy?
  • Maximising direct business is most critical as it is the most profitable strategy for a hotel.
  • Ratings and reviews are a trend that is becoming more and more important. I've read that nearly 50% of consumers won't choose a hotel until they read a review. Hotels and brands need to consider this.
  • Earlier this year, an e-commerce professional mentioned that customers do not like pre-made packages, they love to package themselves by cherry picking on different sites.
  • The packaging site of tomorrow could just be a travel shopping cart that lets you add different components from different sites then price it for you when you are ready and even finding the lowest price and you are ready to book.
  • Price and quality are now more transparent than ever and sites that are more transparent will enjoy more conversions
  • Online travel shopping is still in its infancy. What we need to do is facilitate what consumers really want.
  • As an industry, we are not very sophisticated regarding our need for and requirement of intermediaries. In dire times, we are very aggressive with them
  • we must understand the true cost of bookings through each channel.
  • We need to understand when we need them and when we don't so we can minimise cannibalisation.
  • We need balance. There should be a partnership. It's unfortunate that intermediaries feel they need to cannibalise. Margin and share of business needs to be fair for both entities.
  • Which according to you is going to be biggest development in the travel distribution space this year?
  • Mobile. There has been quite a bit of traction, and we have plans of our own for this space.
  •  
    This interview talks to Gareth Gaston, senior VP of Global E-comerse in the Wyndham Hotel Group, about recent trends in E-comerse.He believes that E-comerse should be apart of every department in the hotel, Front Office, Sales, Marketing, and the departments should help the Online Travel Agencies to draw more guest. Mr. Gaston believes that hotels need to start to create a partnership with online travel agencys(OTA) and begin to create a better system for price consolidations online rather than fight them at every turn for overbooking or under-pricing.
Xin Jing

The End of Channel Management as We Know It | Hospitality Business News - 0 views

  •  
    In the late eighteen-century, customers use postal service to reserve lodging. After that telegraph became effective way to book and reserve. Until 1940s, airlines build a relationship with travel agents and their hotels, an original network was formed. In the end of the 1970s, the airlines provide electronic system for travel agencies to checking availability and reserving airline seats which we called GDS. It offers efficient and costless booking channel. On the other hand, the hotel suffer three commission costs for a single booking which are travel agent, switching company and GDS proprietor. In 1994, Hyatt developed internet distribution system (IDS) which reduce some costs but add intermediary cost. In the last century, the OTAs became a new channel. Customers booking is variables and each channel have its own attendant costs. The hotel should flexible when dealing with the rate, meanwhile carefully monitored the cost of each channel. Therefore the automated channel management system become a trend. Softeware systems now can analyze real-time market data and adjust rate across all the channels 24 hours a day.
Wei Ding

TripAdvisor CEO discusses fake reviews, Google#.Txg1IKe1ZQ8.diigo - 0 views

  •  
    Nowadays, TripAdvisor play an important role in tourism industry. Most of people will review TripAdvisor ranking and then make their own holiday arrangements. On-line user review rankings are important in contemporary society. As the TripAdvisor president said, trip advisor is a honest person's opinion. TripAdvisor website plays the role of trusted intermediary for the independent traveler. However, some hoteliers concern about their personal reputation. I read another article that hotel owner Duncan Bannatyne complains the consumer resource is bad for business. For example, if a hotel was reported for bad bug exist, this definitely is a fatal effect on hotel reputation even this hotel already take proper action to kill all bad bugs. On the other hand, as TripAdvisor CEO stated, "Ninety-eight percent of our audience when we surveyed 'Do you trust the reviews,' the answer was 'yes' because they read the reviews, they go and they stay and it matched expectations. The system works." TripAdvisor also take '"most of hoteliers" concern into their consideration, they have a decade of expertise at catching people who are try to spam their system.
  •  
    From my experience in the industry. I know how much people really depend on trip advisory to help them decide on where to stay when they choose the destination they will be traveling. But I have heard stories on how the Owner of the hotel I used to work for would write on trip advisor amazing comments of the hotel to bring more crowd in and then he would invite his friends to write in trip advisor as well. This makes me question how real are all these comments posted in trip advisor. If you think about it, anyone can make up a profile and fill out a comment about a specific hotel. What makes us so sure about this website overall?
Jessica Schwec

2014 Business Travel Survey: GDS Booking Volumes Still Rising - Business Travel News - 1 views

  • For all the talk of their ultimate demise, global distribution systems process growing volumes of travel transactions
  • Each of the three primary players continues to provide an array of services to travel management companies, corporate buyers and travelers, and their parent companies are pushing IT services to airlines, hotel companies and others.
  •  
    All of the big three global distribution systems were still expanding as well as increasing productivity and revenue as of June 2014. Amadeus, Sabre and Travelport have each made significant moves in the hospitality industry, although primarily for airlines. Amadeus is by far the largest and currently most successful GDS with the highest profit, booking volume, and market share (air travel). As of 2014 Southwest Airlines was their biggest client, but they provide GDS services and access to over 100 other airlines as well. Sabre is second best to Amadeus. The company elected to go public in 2014 and since then their billable bookings, booking share and growth have all increased modestly. During the same year they gained American Airlines, newly reformed at the time, as a client. Presently, the company expects continued improvement in revenue. Travelport has made the decision not to compete directly with Amadeus or Sabre in that they have chosen not to provide "full passenger services systems to airline on a multi-host basis." However the company is still working closely with Delta Airlines and researching "add-on" features with their main focus being the continued growth of "beyond air" activities. Honestly, I was shocked that Amadeus is the largest and most successful GDS. I truly expected it to be Sabre. This belief was based on what I have personally experienced: every OTA I have used required a link to the Sabre GDS, but I can only recall one that required one to the Amadeus GDS. After reading the chapter 8 of D.V. Tesone's "Hospitality Information Systems and E-Commerce, along with the research report from our discussion forum I have changed my paradigm. Regardless, GDSs are still used widely in the hospitality industry. Different segments of the market prefer to book in different ways: via offline Travel Agents, OTAs, hotel websites or on the phone. Those that use either form of TA are using a GDS.
  •  
    Leisure guests tend to book for themselves with rare exceptions including some forms of international travel and cruise travel. These guests use OTAs or intermediaries such as Travelocity (Owned by a GDS company) or TravelZoo. In the case of TravelZoo, a guest uses the TravelZoo website to access information such as availability and pricing that TravelZoo pulls from a GDS before making a selection and processing a transaction. On the other hand, business and corporate travelers are more likely to use an offline TA. An offline TA is better equipped to meet the needs of a customer whom is travelling for business. Offline TAs require less information when booking a hotel room then an OTA does, making it simple for a secretary to book the travel arrangements for the guest. In addition, offline TAs can work easily with a hotel to make special accommodations. The hotel receives contact information for the travel agency that booked the stay in case clarifications on requests are needed. In conclusion, as long as either form of TA is in the market, a GDS will be necessary to streamline bookings and ensure that each TA has the correct pertinent information when making a booking or completing a transaction. As a result, as new OTA options or hospitality enterprises enter the market GDSs are continuing to morph, merge and grow.
cwilliamsiona

Southwest Will Put Content on GDSs: Business Travel News - 0 views

  • Southwest Airlines at long last will provide content and full booking capabilities in global distribution systems via agreements with Travelport and Amadeus
  • Southwest president Tom Nealon said the GDSs are the "third leg of the stool" in Southwest's distribution strategy for business travel, the other two being direct channels and the Swabiz booking tool.
  • Southwest has rolled all those approaches and its recently revamped sales team into a newly named Southwest Business umbrella
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  • "We have a great business product, but we've been harder to do business with in terms of how you book, transact and settle," Nealon said
  • "The shift away from our [Basic Booking Request] and the basic approach to an industry-standard GDS is important.
  • Southwest projects that the GDS presence will bring between $10 million and $20 million in additional revenue during the second half of 2020
  • "We're going to compete hard and compete to win
  •  
    In sum, this article discusses the long awaited partnership with Southwest airlines and global distribution channels Amadeus and Travelport. In the past, there have been many debates regarding the topic of "full content" between airlines and travel intermediaries. However, according to Southwest, this agreement will bring "the highest level of participation." As Southwest continues to revamp and improve the way it competes in the global market arena, Tom Nealon, President of Southwest has stated that, "GDSs are the third leg of the stool in Southwest's distribution strategy for business travel. With its great business product, Southwest is hoping to improve the way consumers book, transact and settle by using global distribution systems. With a conservative outlook, Southwest is hoping that the newly formed partnership with Amadeus and Travelport will generate between $10-$20 million in additional revenue in the second half of 2020.
  •  
    The article demonstrates the benefits of implementing GDS in the hospitality industry. According to the article, installing GDS will enable Southwest Airlines to improve its level of participation by allowing buyers to not only book but also to "change, change, cancel, and modify reservations" via the system. Besides, the implementation of GDS will lead to increase revenue for the company.
xwang083

What is Global Distribution System and how it works - PHPTRAVELS Blog - 0 views

  • The global distribution system can be defined as a network that helps with the connectivity of different travel agencies to multiple different organizations such as hotels.
  • Global distribution systems have not only made the lives of travel agencies easier, but it has also helped them to capture more business and reaching out even more to their potential clients.
  • here is also some drawback that should be taken into consideration by the organizations employing these systems.
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  • There are three main types of global distributions systems
  • it enjoys a good 40 percent of its market shares
  • Amadues GDS
  • Sabre GDS
  • his type of system is the closest competitor of Amadues GDS.
  • Travelport GDS
  •  
    This article mainly outlines the working principle of the global distribution system machine. First, briefly summarize the development history of GDS. Then the global distribution system is defined as a kind of network that helps different travel agencies and hotels and other organizations to connect. This is a system useful for hotels and travel agencies. Because it can not only help tap potential customers, but also help develop new markets. This system brings more profits to hotels and travel agencies, but it also has the disadvantage of high initial costs. There are three main types of global distribution systems: Amadues GDS, Sabre GDS and Travelport GDS. The effective operation of GDS also requires intermediaries. As reservations are made, it shows that the inventory has reduced across all channels along with the official website of the hotel itself.
tgood006

Google takes its next step in online travel planning - 1 views

  • Google has finished putting all the major pieces of its one-stop travel shopping together. The company calls the offering Google Travel, and it has the system in place for consumers to try out
  • Google Travel is, of course, very much a work in progress. But that’s the Google way — test, learn, iterate, solve big consumer problems, expand it around the world, and then monetize the heck out of it,” Schaal said
  •  
    Google is indeed joining the online travel business, this will allow the largest search engine to become one of the largest travel intermediaries. Why is this important? Google has been experimenting and working with the world largest hotel company. The data they exchanged with Marriott has moved Google Travel along so much. This one stop shop is something Marriott is also experimenting with.
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  •  
    This article was a great choice! It will be interesting to see how it plays out. If Marriott did share their data with Google, as the previous reply indicated, most likely it will be successful. Marriott has a strong, vast database of client information. Google Travel will have plenty of information to have a strong, running start.
  •  
    Great article. When I heard about this next big step that Google is making I was intrigued because I travel about 2-3 times a year and my go to site to book flights is Google flights. I always found that it was simpler to use Google Flights than to use Expedia or Orbit. Although Expedia and Orbit offered the hotels and flights in one page, I always deemed them to be too busy and more complicate to navigate. Looking at Google Travel, Google have kept it clean, direct and simpler and no pop up ads than what we are used to from the other OTA sites. It is interesting to know how relations with Google and Expedia will be after this. Although as the article states, Expedia CEO Mark Okerstrom saw this coming and he states "we have to be watchful about what they are doing" because Google have obtained a tremendous amount of data collected from marketing that Expedia does through Google.
  •  
    True, Marriott is transitioning into a one stop shop and google has started but they haven't gotten on part with the other platforms as of yet. But it won't be long before they integrate and take over especially with all the information they have.
laboygrisell

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

  • 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.
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  • 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.
  •  
    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
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    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.
alejandrodiazfiu

the-future-of-hotels-customized-experiences-sustainable-practices-final.pdf - 1 views

shared by alejandrodiazfiu on 21 Aug 23 - No Cached
  • Think about micropersonalization. You can imagine a world in which every single touchpoint with a guest is unique. On our digital channels, we’ll be able to recognize the guest, know their history and their background, and contextualize what we show them.
  • we’ll allow each guest to personalize many details of their stay: the temperature in the room, the scent, the layout, what side of the building the room is on. T echnology will help make sure that we provide consistency across the entire customer journey and that we offer something distinctive for every single guest.
  • You can also decide to go straight to the room with your mobile app, so the reception and transactional process will disappear if you prefer. That will free up the hotel staff to dedicate their time to helping guests in more active, less transactional ways.
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  • I’s impact is going to be huge, and that’s true in marketing as well. It is certainly going to help us be more predictive. Based on the previous booking history of our guests, we’ll be able to determine what they will like in the future, so we can make better suggestions to them about hotel brands, destinations, and guest experiences. We might soon be able to use AI to determine what our next marketing campaign should be.
  •  
    In envisioning hotels in the 2030s, technology plays a transformative role for Accor's C-Suite. Executives emphasize "augmented hospitality," which entails highly personalized guest experiences driven by advanced technology. They anticipate a future where AI and generative AI enable micro personalization throughout the guest journey. From recognizing guests' preferences to offering tailor-made room settings, technology ensures a unique and seamless experience. Furthermore, technology is poised to revolutionize booking processes. Accor is exploring AI-driven marketplace platforms where customers interact directly with hotels. This shift eliminates intermediaries, offering real-time, personalized offers. Additionally, the potential use of NFTs for unique experiences and virtual exploration aligns with Accor's tech-forward vision. In essence, technology will be the linchpin in crafting memorable and individualized hotel experiences in the 2030s.
Tomas Moreira

Airline distribution - 0 views

  • THE INTERNET HAS A LOT TO ANSWER FOR IN MAKING LIFE DIFFICULT FOR TODAY'S AIRLINE LEADERS. Information technology has always created headaches for management, but the appearance of the internet added a whole new dimension of transparency – of prices and seat availability. This engaged the consumer more directly and opened up new opportunities for intermediary dealing
  • These, the so-called online travel agents (OTAs), were not in reality agents paid by the airline. They merely were able to insert themselves in the selling chain because they provided the public with an attractive proposition. And, instead of selling tickets directly, they referred a would-be traveller on – either to the airline directly or to a global distribution system (GDS), which then paid the OTA for the referra
  • American found this distasteful, firstly because the heavy accent on prices alone led to commoditisation of the airline’s product; and secondly because the GDS – to add insult to injury – was paying the OTA out of the fee the GDS then charged American for the referral. The concentration on pricing, argued American, meant that qualitative and other valuable items were overlooked. If instead the customers had gone to American’s website directly, they would have been able to see the full range of upsell opportunities, therefore preventing American from maximising its ancillary revenues.
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    This article talks about the challenges of internet referral webpages that is hurting American Airlines and other big airlines.  This is an example of how this travel business is loosing profit by paying referral fees.
Catherine Gibson

GDS Will Evolve Into 'Value Creation Hubs,' Harteveldt Says - 0 views

  • Airline distribution will migrate from global distribution systems to “value creation hubs” over the next five years, according to airline and travel industry analyst Henry Harteveldt.
  • Value creation hubs, or VCHs, will be aggregators that enable extensive airfare and product transparency, dynamic pricing, and rich merchandising and retailing,
  • “The GDSs have served airlines well for many decades,” Harteveldt wrote. “GDSs’ security, reliability, speed and accuracy are among the best in any transactionally based industry. “
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  • Airlines want more flexible, robust commerce platforms built on contemporary software and architecture,” Harteveldt wrote.
  • “Airlines want commerce platforms that can support extensive fare and product transparency, dynamic pricing, rich basic and ancillary product merchandising and retailing and the ability to reliably and securely process the massive volume of shopping sessions.”
  • The airlines also believe that new providers who enter the airline distribution and commerce space will generate more competition and better selling solutions,
  • They will use the new-generation commerce technology infrastructure that powers airline CRS/PSS host systems and e-commerce solutions, thus reducing the need for lengthy, costly disruption in a conversion to a new passenger services system.
  • Does this mean GDS companies will disappear? No, Harteveldt said.
  • value creation hubs will be developed with the database-commerce operating and business environment in mind and will be designed to provide extensive fare and product transparency, support dynamic pricing and enable rich merchandising and retailing.
  • A key difference between GDSs and VCHs will be the business level at which they operate. Unlike GDSs, which work with individual airlines, VCHs will be developed for each major alliance – Oneworld, SkyTeam and Star Alliance.
  • Because the VCHs will operate at a “group” level, rather than at a single-airline level, the VCHs will house a “community link,” similar to the common platform operated by Amadeus, which will function as the “hub of the hub,” he said.
  • An important distinction between the GDS and VCH models will be the commercial relationship with subscribers, including agencies and other intermediaries.
  • Like GDSs, value creation hubs will be designed to support high-frequency, high-volume shopping.
  • Value creation hubs, or VCHs, will be aggregators that enable extensive airfare and product transparency, dynamic pricing, and rich merchandising and retailing, Harteveldt predicted in a white paper on “The Future of Airline Distribution.” The paper was underwritten by IATA
  • They will use the new-generation commerce technology infrastructure that powers airline CRS/PSS host systems and e-commerce solutions , thus reducing the need for lengthy, costly disruption in a conversion to a new passenger services system.
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    This article is explaining how Henry Harteveldt, an airline and travel industry analyst, believes that GDSs will evolve into value creation hubs, or VCHs, over the next five years. He believes GDSs have served airlines the best among many transactionally based industried; however, many areas of airline marketing, sales, distribution and e-commerce are looking for more. He specifically states that airlines are looking for "more flexible, robust commerce platforms built on contemporary software and architecture", as well as "commerce platforms that can support extensive fare and product transparency, dynamic pricing, rich basic and ancillary product merchandising and retailing and the ability to reliably and securely process the massive volume of shopping sessions." VCHs will be used to support the high-volume, high frequency shopping, similar to GDSs, and the system will the new technology that powers airline CRS/PSS host systems, reducing the need for costly conversion disruption.
Fang Shu

Google Hotel Finder revisited - 7 views

  •  
    This is an interesting article about Google, who is quickly becoming a big name player in just about every business segment out there. The article addresses Googles new search tool called Hotel Finder, which is still in testing phases. This tool is designed to make it easier for users to find, compare, and book hotels, by drawing on a map around an area they want to stay in a certain location or city and it lists the hotels in the search area, with prices, availability, star rating's and reviews. In addition it lets you filter the results by price, price compared to usual, Hotel class, and user reviews, and allows the user to book directly through the hotel or through an intermediary site with a click of a button. This article also talks about a possible downside to Googles new service in the online travel agency segment. The article explains how some are concerned, because Google is placing comparison ads in premium space on top of the Google search results for hotels, which when clicked by a user takes the them to the full Google site and pushes OTA sites like Expedia, Hotels.com, and Orbitz and hotel websites farther down the search results list, which is making them pay more for premium Comparison Ads. Also the OTA's are concerned about how the Price Per Click may go up, making the OTA's pay more to Google. I went on and played around with Hotel Finder, and I have to say it is very easy to use, and allows you to really customize your experience and pick exactly where you want to stay. http://www.google.com/hotelfinder/#search;l=miami+florida;d=2012-01-22;n=1;v=l;r=0;s=m;fv=
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    I love the part of the Google Hotel Finder about the comparison ads that help me know how much I would pay if I book the same hotel from other websites by only visiting one Google Hotel Finder website. I hate to search the same hotel on different websites to choose the best price. It costs me much time to make a plan of travel. The page of Hotel Finder is clear and easy to understand how to use it. All results of hotels would be sorted by price and I could get best price fast. Yesterday was my first time to use Hotel Finder and I used it just like I already knew how to use. I don't need to spend much time to study the search website and the page has several recommended words to help me get what I want.
Alexandra Givner

New website lets hotels bid for your business - 0 views

  •  
    A very interesting website that allows users to post an existing hotel reservation and then receive "bids" from other hotels in the area to give the user better offers and deals. It essentially allows the hotels to pursue customers, allowing them to take advantage of offers such as upgrades and amenities. As mentioned in the article, the website is very user friendly and transparent - allowing users to get a good feel for the hotels that are "bidding" on them. I believe this website is a very interesting and creative application. The company has put an innovative twist on e-marketing that allows for the user to feel "wanted" by the hotels. By giving a customer so many options, they are able to create a competitive lodging market and hopefully, in turn increase profits in the industry.
Akshay Ramanathan

BetaKit » innRoad Raises $5.8M to Usher in the Future of Online Hotel Management - 1 views

  • outhampton, NY-based innRoad just announced a $5.8 million Series B round of funding
  • back office products specifically targeted at independent hoteliers
  • provides small hotel owners with centralized online tools to help them manage their business
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  • hotels can use it to maintain full control over every aspect of the process, from booking, to marketing, to online reputation managemen
  • the funding will help innRoad accelerate its offerings on that side of the equation, which will help hoteliers connect directly with potential guests, something that provides long-term financial benefits over dealing with online intermediaries like Expedia and others
  • innRoad offers a lot of value to small hotels looking to get the tools they need to compete with bigger players
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    This article is about innRoad a New York based company that specializes in delivering SaaS and web based PMS and software solutions specifically targeted at independent hotels. The article mentions how the company just received almost $6 Million dollars to invest in expanding and and building their sales team. The CEO of the company brings up an interesting point about brands, and mentions that its becoming less and less about he size or name of the brand but rather how your peers and others rate their experience in a particular hotel. This will provide leverage for smaller independent hotels to gain popularity and grow. InnRoad's software is doing big things to help its clients better connect with customers and manage their properties.
Jouvens Jean

Developing an Email Marketing Strategy in Hospitality | By Jason Price and Max Starkov - 0 views

  • his year over 20% of all revenues in hospitality will be generated from the Internet (15% in 2003). Another 20% of hotel bookings will be influenced by the Internet, but done offline (call center, walk-ins). In 2004, for the first time Internet hotel bookings will surpass GDS hotel bookings. Two years from now the Internet will contribute over 27% of all hotel bookings (PhoCusWright). 53% of all Internet bookings in hospitality will be direct to consumer (i.e. via hotel-owned websites).
  • Direct online distribution cuts costs, attracts affluent customers and lessens the dependency on intermediaries and more traditional and expensive channels. Over 205 million Americans are active Internet users (Nielsen) and close to 50 million of them will purchase travel online this year. Many hotel clients already generate 30%-40% of their bookings from the Direct Internet Channel.
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    This is an article from 2003 and now if you fast forward ten years later you will get a picture of how eMarketing has changed our industry.
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