13 eDistribution Flashcards
PMS
Property Management System (individual Hotel)
GDS
Global distribution system was the first electronic distribution system in tourism
CRS
Central reservation system if you are in an hilton hey will help you to book in another hilton
TA
Travel agency
OTA
Online travel agency
The big GDS
Amadeus (used by e.g. opted, ebookers, expedia)
Sabre (used by: e.g. Travelocity, lastminute.com)
Galileo by travel (est. by: e.g. ebookers, orbitz)
Worldspan by Travelport (used by: e.g. hotels, orbitz)
eDistribution example
Chain hotel website
hotel distributors / discount portals
OTA
Tours operators
Destination portals
Meeting and Incentives site
Airline trave portals
Market shares of OTAs in Swiss Hospitality industry
Booking.com 70%
HRS 10 (Hotel reservation service, german market)
Expedia 6
Venere 3
Hotel.com 1
Booking commission
In CH: 12%
London and paris up to 25%
in general 10-25%
Booking - relationship with hotels
love-hate they love the reservation that booking brings in, but they hate it when they have to sell for low price, preventing them from differentiation
Booking’s market power, make its relationships with hotels uneven.
Hotels might be receiving significant revenues from the reservation that are made through the site, but if they depend on book.com for their reservation, they have little bargaining power
Power of OTA
they have incredible power
75% of consumer who booked at the brand’s site, visited an OTA prior to booking
Hotel own booking engine: many possibilities
many PMS offer online booking features
Some DMS offer integrated booking features
Some e-distibution portals offer out-of-box solution..
if you integrate the booking bottom (functionality of booking.com) you don’t pay commission (they don’t have own booking engine anymore, you use technology of booking.com
Rate Party
is so complicate that you don’t have control over your rates
Maintaining consistent rates for the same product in all online distribution channels, regardless of what commission the OTA has
often distribution partners request the “best rate” to ensure “rate parity”
more and more portals offer price comparison features you book with TINGO and if there is a cheap offer they give you back the money
Hotel Marriot: you don’t want to train customer to book at last time.
You don’t want to sell out because if others hotels sell out you can raise prices
special way of distribution
tonight app: you see an offer for the upcoming night
voageprime.com: only member club: you have to log in and there are offer. :) the prices are not visible for other people
Unpublished rates: you don’t really know what are you buy. you know like if there is wifi or pool. :) hotel don’t want to show its discount rate in public
Groupon: main reason: new guests. (problem: they are not the gust you want. they come once. they will go new time to another hotel with offer.
Yield management as a real-time pricing
Management of demand and capacity in order to maximize yield per innovatory unit. method to sell the right inventory unit to the right type of customer, at the right time, and for the right price
