edistribution hotel strategies

1. eDistribution Hotel Strategies

3. Meeting Hotel’s Needs

4. Putting it all Together

5. Why the Focus on Electronic Channels?

6. Hotel e-commerce is becoming increasingly important for the hospitality industry CRO distribution continued to shift in 2004 toward the more cost-efficient electronic channels

7. Global Distribution Systems began in the early 1980’s Over $250 billion of travel sold through these systems Largest e-commerce marketplace, far surpassing total business transacted on the Internet Originate about 700 million inbound travelers a year worldwide The World’s Largest e-Commerce Marketplace

10. Internet Use on the Rise Consumer utilization of the Internet to plan some aspect of a trip continues to rise

11. Lookers to Bookers The rate at which consumers are using the Internet to book travel services is growing even faster

12. Importance of e-Commerce Bookings % of Contribution to Rooms Revenue

13. Importance of e-Commerce Bookings % of Contribution to Rooms Revenue

14. For managing performance and competitive benchmarking in electronic channels

15. GM VIEW: Summarizes Pricing, Rate Parity, Best Rate GTD

16. Quick VIEW - Simple One-Page View of Competitive Market Displays the lowest overall rate across all channels, enabling users to quickly gauge cross-channel competitive positioning Shows a complete picture of pricing by channel for auditing purposes. Easily identifies both rate parity problems as well as failures to meet best rate guarantee programs

17. Daily VIEW: A complete daily picture for all channels and competitors Much like the Competitive Rate View section, this displays the lowest rate, by subscriber/competitor, however, it gives you the detail by each specific site. Much like the Competitive Rate View section, this displays the lowest rate, by subscriber/competitor, however, it gives you the detail by each specific site.

18. Multiple Length of Stay VIEW: One page view of multiple LOS

19. Channel VIEW: A more detailed view of pricing by channel This section provides a summary of the lowest rate for a specific site. Questions to be asked: Are the merchants charging higher rates for your hotel than you are? Does the merchant have availability for your hotel and you don’t? Is your rate range what you expected/deployed for each of the retail sites? This section provides a summary of the lowest rate for a specific site. Questions to be asked: Are the merchants charging higher rates for your hotel than you are? Does the merchant have availability for your hotel and you don’t? Is your rate range what you expected/deployed for each of the retail sites?

20. Supporting Detail: Provides rate descriptions from each site

21. Corporate RateVIEW

23. GM Summary An overview of Market Penetration Performance

24. Performance Summary: Key Measures by GDS Monitor market share and penetration by GDS compared to prior year

25. Performance Summary: Key Measures of Electronic Distribution Understand 12-month market penetration and average rate trends

26. Distribution Summary: Account Performance in Your Market Subscribers may request up to 150 total agencies

27. Distribution Summary: Top Producing Cities and Countries

28. Revenue Management Summary

29. Revenue Management Summary

30. Revenue Management Summary

31. A platform from where hoteliers can manage inventory and rates across multiple retail and merchant sites

32. Channel Manager Coverage The top sites (and their affiliates) capture ¾ of the total on-line visits Please make sure you explain the affiliate effect. Because sites like Expedia, Hotels.com and others power thousands of sites, when using CHM to directly interface with these sites (Expedia, Hotels.com and others) the hotel would be distributing rates and inventory across all those hundreds/thousands of sites.Please make sure you explain the affiliate effect. Because sites like Expedia, Hotels.com and others power thousands of sites, when using CHM to directly interface with these sites (Expedia, Hotels.com and others) the hotel would be distributing rates and inventory across all those hundreds/thousands of sites.

33. The Way It Works Today

34. The Way It Will Work with Channel Manager

35. ChannelManager’s Economic Value $50k salary x 20% of the RM’s time= $833 250 room hotel @ 70% occupancy @$175 ADR generates $918,759 in revenue a 2% increase due to better Revenue Management would yield incremental revenues of= $18,375 4 Suites per month (incremental) @ $200 (2 night stays)= $1,600 3 new sites to the distribution portfolio 4 reservations from each site @ $150 (2 night stays)= $3,600 This is a hypothetical example – the next slide will enable you to customize with hotel specific data. Data assumed for this example was bolded. This is a hypothetical example – the next slide will enable you to customize with hotel specific data. Data assumed for this example was bolded.

36. Electronic Marketing For increasing business in electronic channels

38. Travel Agency Media Network

39. An Increasingly Complex Maze

40. We Focus on the Two Most Profitable Channels

41. Our Travel Agency Media Network

42. Independent Research Shows GDS Media Significantly Outperforms Other Media Options

43. Ad Serving – How Does it Work? Ad serving is the process of dynamically delivering targeted electronic advertisements (i.e. “serving ads”) into a variety of electronic mediums. An ad server houses an advertisement and delivers it when the parameters for that particular ad are met.

44. GDS MarketingOne to One Real Time Targeting

45.

48. Consumer Media Network

49. Our Consumer Network

50. Results Page

51. Landing Page

53. Destination Page Advertising

56. Customer Reach