On Linkedin 14 January 2015 -----
It has been quite long time after my last article on Linkedin and now I would like to share my vision to all my hospitality industry friend
Yesterday, one of our friend Mr. Kevin Tatem from Siteminder has shared below article
http://www.traveldailymedia.com/216810/half-of-online-travel-searches-end-at-price-screen/
And I have commented the article as follows :
1. Hotel should have proper pricing strategies, why should hotel website rate compete its own price on third party website ( this is Insane, we should make sure hotel website has to be the best rate in all distribution channel.
2. Make sure your booking engine has simple step for a booking and user friendly
3. How your price is displayed on hotel website ( is it complicated and look like stock market exchange) .. your price is crucial so display them in a proper way.
4. How to use our Booking engine for other market segment . ( most of the hotel only focus using it only for single market segment). I can go on an on but have to stop
As a professional who is concerned on hotel distribution strategies, I always want to study hotel website and study the booking engine that the hotel use and if I know the person who own the website, I send them my insight on how they need to manage their own distribution channel by suggesting them to choose a proper booking engine which has simple on booking steps and simple on the look as well as user friendly.
I would like to share some ideas on Hotel Distribution Strategic for all hotel which will be benefits their business by having technology which has to be integrated to hotel website.
2 ( two simple ) strategies could be said as below :
1. To ensure and encourage all hotel professional to manage their website as a main distribution channel for client from all market segment to get the best rate whether it is on a B2C platform or on B2B platform. ( selling the right price to the right customer with an effective and efficient way of communication).
2. If we all believe direct booking to hotel is the best way to get best result and I would like to tell you that direct selling to all our business partner will be also have the same impact.
Notes : And make all effort to drive your own business instead of your third party partners. Don't easily get intimidated with all big brand in the market, these big OTAs has the power to do so as hotels have given them the power which in turn make the hotel weak and the hotel has allowed this third party business partner controlling their inventory or even their rate and OTA has the power to set their own commission which is now is very big. Imagine all hotels in the world has no inventory given to OTA only for 1 day, I can assure you that all booking will be done thru hotel website
This is your initial steps on how to make your website as your main Distribution Channel :
Set up a booking engine on your website. Set proper rate planning, and strategy, inventory and communicate to the market by any mean of communication ( Social media, email, advertisement, etc)
Having a booking engines then you will be able to set the distribution activities for your hotel. Set up all your rate from BAR ( Best Available Rate), special offers, packages, as well as travel agencies negotiated contracted rate, corporate rate, Loyalty member rate , etc. All the rate has to be loaded into your system and distribute the rate to all your market segments.
Having this strategy, hotel website will be functioned as a B2C website for all our direct client as well as a B2B website for all your contracted business partner such as travel agent/corporate/ and other organisation.
Make sure your booking engine is connected to major Channel Manager system to ensure others distribution channel is also managed effectively and efficiently
Last but not least , get your property connected to GDS ( Global Distribution System ; Amadeus, Sabre, Worldspan, Galileo) as this will ensure your hotel connected to more than 500,000 travel agent worldwide. However, to be connected with GDS you have to ensure that you have Travel Agent commission settlement system ( such as Tacsnet, WPS, etc) . This system will ensure all travel agent that are connected to GDS will get their commission on time. There are few fee components for GDS connection for every room night booked. We all are aware there are only few hotel know how to maximize their booking engine to be used for broader strategic of distribution activities. Core tactics to maximize your website as your main distribution channel by ensuring proper Pricing Strategy for each market segment which related to customer need and requirements, your BAR as your dynamic rate should be define as your " Ruling Rate" so every special offers could be defined based on some percentage / amount ( mark down) from BAR. Special Offers can be also defined for Travel Agent / corporate which will be based on their existing negotiated contracted rate.
Having all your rate define based on proper pricing strategy, will ensure you can keep your rate integrity as well as rate parity to all your distribution channel to gain more trust from the market.
I am sure, others have other strategies that can be shared to all our friend in the hospitality industry.
Looking forward to hear from you and if you want to get connected with me , please to share my mobile / WA number : +62 818 0361 4636 and email : askar.dgkamis@gmail.com
ENJOY YOUR DAY