contract with a hotel and static prices, rates, availability
- 17% of gross revenue of the company 120 miilion; direct connect of company
- Technology and Commercial Challenges
- Hitlon -> External IT (switch; derbysoft
- Small chains usually go to channel managers (siteminder, ratetiger, ezyielder)
- Pulling content- we pull from somebody else
- Pushing content – Push only if there is a change
- Derbysoft pulls from product and pushes to extranets)
- All margins negotiated at the brand level (rate plan codes that are gouped by room type; 15-20% slapped on as a net rate and then we make a margin increase)
- Dis: restrict distribution by the hotel
- Direct connect no cutoffs and allotment
- There is no GPE for diect connect currently
Pros
- Auto Res Delivery
- Easily managed by the hotel
- Incrased brandn exposure
- B2c distribution
- Short term availability
- Increased coverage
- Identifies new markets
- Provide added inventory
- The rate of the day
Cons
- Error rates
- Relies on Client Technology
- Short term (0-90)
- Limited Visibility
- Eliminates distribution
- Unable to market promos
- Inconsistent production
- Lock of control over Revenue Management
- Lack of hotel understanding
- The biggest challenge is to standardize all of this with other provider problem
Why would a hotel opt out: Maring, bad relationship with SUPPLIER, package rates
Opt-in the structure is very unfavorable
Figure out why derbysoft is so good at pulling and then pushing to us
Why does product partner with product integration; sometimes they have issues that product managers don’t know how to handle; billing issues or vcc; Hotels don’t know anything about product integration and manages on our side
Opt-n situation lead that you need to send to maria to map and can be connectd to direct connect (Hyatt hotels)
Product managers are expected to manage 200-500 hotels / YEAR
Hilton Palacio – Number one booking direct connect; need to identify why these are working
Higher volume on localtgs and direct contract
Number of hotels is stronger on direct connectivity
Objective:
How:
ROI: Desing and print at staples/kinkos; 6-8 pages, and bind it
Hotel printers; acesss from photo library; Nicole to send
Description
Picture
Start Rating
Hilton-DC
ACOR-DC
CHOICE-DC
HOBO IS A DC
PRB-Exclusive Deal; No one knows black dots
If an increase in the star rating, a decrease in $
Best Direct Connects are low
- 65% Cancellation Rate
- Non-refundable, not good
- 150,000 H (50 Partners, Expedia)
- Top 10 Destinations are clear
- Booking bigger
GTA Slide=Good Aesthetic
FIT
- Travel Australia
- Mom Resorts
- TripAdvisor
- AirBNB
- Disney Parks
- Delta
- Southwestern
- Best Western
- Cathay PACIFIC
@Krtravelweekly
Static- traditional FIT Contracts
PRB=FIT
Longer Lead Time; Dynamic pricing will lose clients
50% Margin->RD
96/$150 Million
82% Tourico = Static
18% grow up, Dynamically/Direct Connect
Direct Connect: Dynamic 15%, Rate changes, sometimes can’t see because of technology; Hotel doesn’t do well in static distribution
DISADVANTAGE OF DIRECT CONNECT
- Error Ratios
- Decrease Margin Opportunity
- Control to Chains
- Decrease reduces least time connectivity
- M comes from Channel Managers
A mix of Business: Room tells you whom you should book;
- BLT
- Eclick
- LT
- LMC
- LMCclub
Price Control/Margin Control; control-static pricing; PRBs in the back office is yellow
- Channel Manager is not an XML; Convenience for Hotel
- DC=Seamless Integration
- We don’t
- Not manual Reservation local TGS Provider
IHG has a 7M Marketing plan
Booking.com no has parity; IHG turned off DC
- You can now look at switches
- Higher the transaction size, the more upscale the client is
- Lower lead time worse the economy
- 249 switches work for Tourico
Hotel Chains
Wholesalers – Clients
Channel Managers/Switches – directly connect to PMS; Push distribution channels to hotel partners
Our own api that only supports push
DerbySoft can connect to anyone; have all top 10; agoda, gta, the best solution for both sides and the cheapest; suppliers are paying by the booking; China
Hbsi- based on atl; three times more than derbysoft
PI KPI
- Volume – GP, Gross
- Booking Failure Ratio (Success Ratio) – Ambiguous; only monitoring for Web SVC clients/bookings
- How happy are my clients when they get these failures?
- What are the willing to withstand
- Non-Distinct vs. Distinct; we are using distinct and this is the lowest
Booking failure standard is 7-8 %; more sensitive to pull
Push is more real-time updates
The main reason to have directly connected is to cut leadoff; static has cut off problems
0-1 booking for today
0.8% booking failure with TGS; our own inventory; we don’t need to cache
Availability and price discrepancies are the problem for connectivity with External providers
Look at abnormal information based on comparison week by week
Hobo has technical issues and they are selling lots of bookings (Thus more failures)
Check failure ratio; compare last month and last week
Pull- lots of way to the cache, transactional (every 24-48 hours you are erasing), predictive; we prefer to push
Chain discovery – pull by event
Getaroom and Priceline use hot deals
Trigger?
Can you please refresh your hotels for Hoboo, when there is a cache problem; however, we expect this to be solved
Force booking-force the system to give another room; rules for how much you want to lose
Our booking failures are better than our competition
TGS-spec.w/hotels
Cities Bridge is buying
Local + Hoboo = DC
Company average for locally connected is 85%
Price Control and margin control. Control is stack pricing. 50% Margin in Research and Development. Longer lead-time with Dynamic Pricing-loose clients
Transient-leisure demand; the average customer uses a combination of 19 websites and mobile apps during 1 trip