Lecture 2 Distribution management and reputation management Flashcards
What is price fencing?
Conditions which help you to differentiate rooms e.g. you can cancel it 24 hours before, view, non refundable etc
Why is differentiation essential?
because there is different willingness to pay and people are looking for different products
> to sell different products at various prices based on customer value and customer worth
What is inventory management per channel and capacity management>
The process of controlling the number of units and availability of products and services
What is important in distribution management (place)
> Look at your market segmentation
On time displaying it for your customers
-Sources of incoming reservations
-Inventory management per channel (PUP)
-Type of GDS and IDS
-OTA vs direct booking, cost of acquisition (cost of getting guests in your hotel)
-Channel selection, advantages and disadvantages
-Trends
Steps of managing your inventory across various distribution channels:
- Figure out the demand (sales)
- Control your reservations in a system
- Analyse and forecast
- Set a price
- Decide unit availability
- Decide pricing conditions
What is IBE
Internet booking engine (direct booking through the hotel website)
What is GDS?
Global Distribution System (business to business)
Examples of GDS
- Galileo
- Worldspan
- Amadeus
- Sabre
What is IDS?
Internet Distribution System (business to consumer)
Examples of IDS
-Expedia
-Priceline
(these 2 own 95% of OTA’s)
-Kayak
What is a proprietary site?
Brand or own company website
What are examples of Referral/meta search sites?
- Trivago (owned by Expedia)
- Kayak (owned by Priceline)
- Tripadvisor (owned by themselves)
Customer ownership
who is responsible for the provided service and who gets insight into data
What is cross-channel behaviour?
Accessing more than one site before making the purchase
How do you increase conversion?
How do you attract customers to your proprietary site?
What is price/rate parity?
The practice of maintaining consistent rates for the same product in all online distribution channels, regardless of the OTA commissions.
Website conversion rates
If you have a high conversion percentage you’re doing well with your website
Revenue management is:
right customer-segment market
right product- differentiate product
right price- balance between price and quality
right time - influence availability by demand forecasting/displacement analysis
right place- choose distribution channel / inventory management per channel
tools and tactics for revenue management
- reservation system
- revenue management system
- price
- pricing rules & conditions
- Price elasticities
- availability control
- price fencing
Requirements for proper forecasting
future data and historical data
Examples of future data:
- events
- economy
- competitors
- technology
- guest behaviour
Examples of historical data
- KPIS; yield, revpar, revpor
- No shows
- Denials
- Cancellations
- When did they book
- Customer profile
Reputation management
More reviews > replying to them> making guest satisfied > better reviews> trusted relationships > higher revenue
