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Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
Seminario AHP Hotel Distribution - Rate Tiger
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Seminario AHP Hotel Distribution - Rate Tiger

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Participation of Rate Tiger at the Associação Portuguesa de Hotelaria Seminar "Hotel Distribution"

Participation of Rate Tiger at the Associação Portuguesa de Hotelaria Seminar "Hotel Distribution"

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  • 1. “Making the most of IDS as part of your Revenue Management strategy” Seminário Associação da Hotelaria de Portugal 30 Junho 2010 | IPAM LISBOA Pilar Sánchez Aita, RateTiger
  • 2. Brief History of e-Commerce < 1990 1990-1997 1998-2002 2003-2006 2007-2008 WWW, NEXUS, Web Internet More browsers Mozilla Archie, Gopher, Yahoo search, Google, Baidu Search Engines Lycos, Altavista, MSN Search, more Inktomi, Ask Jeeves Info.com, more MORE PRODUCT Travelweb (PEGS), Expedia,, WorldRes, Bookings, Online Travel Explosion of websites Travelocity, many more Hotelbook (PEGS) Holidaycheck, Explosion Web 2.0 - Reviews Tripadvisor trivago and more (including OTA) Kayak, Sidestep, Explosion - Meta-Search Engines TOGOL, Mobissimo specialized and more (e.g. trivago) Web 2.0 - Social Facebook, MySpace, Communities Explosion YouTube, WAYN Web-sharing FASTEN www.ratetiger.com
  • 3. The evolution of the Internet has enormous impact on Revenue Management Strategy What do we know?  We know the internet is becoming more and more powerful and more of a necessity, rather than a luxury in our everyday lives.  We know that hoteliers are learning to use more Revenue Management (Yield Management) strategies. What is Revenue Management “ … Revenue Management is the process of understanding, anticipating and reacting to consumer behavior in order to maximize revenue or profits… “ (Wikipedia, April 2008) Not simply the art of being the cheapest! www.ratetiger.com
  • 4. “How Internet Distribution Systems impact the way hotels need to view revenue management” What influences consumer behaviour ?  Product In hoteliers’ control  Location A set parameter  Price In hoteliers’ control  Availability Driven by the market and the hotelier  Convenience In hoteliers’ control  Impression In hoteliers’ control Conclusion: 5 out of 6 can be influenced by the hotel www.ratetiger.com
  • 5. “How Internet Distribution Systems impact the way hotels need to view Revenue Management” www.ratetiger.com
  • 6. What the Revenue Manager must consider :  Segmentation of client mix (corporate / leisure / weekday / weekend / etc.)  Balance between current occupancy and rates  Competitiveness of rates and ranking  Consider consumer benchmarking abilities  Market conditions (trade shows, events)  Forecast of future occupancy  Consumer trends & behaviour  Competition www.ratetiger.com
  • 7. Why work with IDSs?  Greater exposure  Segregation of inventory  Lower cost per acquisition compared traditional  You want their loyal customers www.ratetiger.com
  • 8. Return on your investment...  If your Average Room Rate is 100 euros per night..……  If you decided to update 10 websites ……….  If through greater exposure, you received just ONE extra room night per month from each site you work with……..  100 x 10 x 12 = 12,000 euros per year would be generated. It’s an easy decision to make ! www.ratetiger.com
  • 9. “To position or not to position…” - Parity versus maximizing opportunities at producing IDS Hotels have the choice now... 1. Different rates at different sites 2. Keep your rate parity at all sites www.ratetiger.com
  • 10. “To position or not to position…” - Parity versus maximizing opportunities at producing IDS Parity No Parity Uniformity at all websites Different rates @ Different sites No confused clients Clients could be confused Can optimise rates; different Can’t optimise rates channels sell differently - Different countries/incomes - Different selling power of channels No conflicts with travel websites Hotels have more control over Revenue Management / Strategy METASEARCH: doesn’t matter for METASEARCH: Transparency to hotels using rate parity consumers www.ratetiger.com
  • 11. Recent booking trends and the impact on revenue management Booking trend Impact on RM Growth of online bookings Focus on travel websites Growing number of travel websites Greater choice of distribution / product placement Greater choice of distribution / product More decisions to be made / more placement updates to be processed More decisions to be made / more updates More time consuming and more to be processed confusing www.ratetiger.com
  • 12. Summary: Right time, right place, right price. Revenue Management in a world wide web. Right Time – Consider:  Market conditions (trade shows, events)  Level of occupancy  Consumer trends & behaviour  Competition www.ratetiger.com
  • 13. Summary: Right time, right place, right price. Revenue Management in a world wide web. Right Place – Research:  Global vs. national vs. regional extranet?  Offline vs. online?  Question: which extranets produce at the Right Time? www.ratetiger.com
  • 14. Summary: Right time, right place, right price. Revenue Management in a world wide web. Right Price – Manage:  Segmentation of client mix (corporate / leisure / weekday / weekend / etc.)  Balance between occupancy and rates  Competitiveness of rates  Consider consumer benchmarking abilities www.ratetiger.com
  • 15. … Ask yourself… Online  Where is my business coming from?  Who are my competitors and how do I compare?  Which channels do I need to work with?  What should be my pricing strategy? RT Strategy  How or how often should I update my distribution channels?  How do I monitor results? www.ratetiger.com
  • 16. Market – Online Distribution Market Overview Demand Channels Airline CRS (GDS) Switch Hotel CRS Hotels Segments of Distribution TRADITIONAL Travel Website Sabre Pegasus Chain CRS Chain Franchises Representation Independent WorldSpan Company Properties Travel Agents CORPORATE TRAVEL Amadeus Who will help to manage this chaos ? RT Integration Galileo GROUP CONVENTION Event Management Hotel/Motel Companies Groups RT Integration Independent LEISURE Call Centers I-CRS Hotels TRAVEL INTERNET BASED Resorts Travel Websites Inns, B&B’s www.ratetiger.com
  • 17. eRevMax Inc. / Rate Tiger - Key Facts WHO ARE WE ?  RATE TIGER – We build software for hotels (since 2001) that  Simplifies competitor analysis  Centrally manages rates and availability  Automates revenue management  Products for Hotels, Hotel-Groups / Chains, Hostels and Distribution Channels www.ratetiger.com
  • 18. RateTiger Product Suite Helping hoteliers to better manage online revenue and distribution ... RT Strategy www.ratetiger.com
  • 19. Products RT Strategy  Benchmarking for Hotels / Groups / Travel sites  Competitor rate information on travel and hotel sites  Weekly report or online real time (both accessible at any time)  300 websites connected / 3,000 hotel sites configured  Several packages available www.ratetiger.com
  • 20. Products RT Strategy  Rate & Inventory Allocation  Manage multiple travel websites in one screen  Optional status quo (Pro version)  Currently over 250 sites  Several packages available www.ratetiger.com
  • 21. Products RT Strategy RT Strategy  Low cost revenue management system  Based on how hotels determine rates  Three strategies  Lowest rate guarantee available for all strategies  Additional features www.ratetiger.com
  • 22. … OR very simple … Without RateTiger With RateTiger Time consuming process? With RateTiger you will You can’t add more sites? Confused? Manage More by Managing Less www.ratetiger.com
  • 23. Top 8 Tips for Effective Revenue Maximization 1. Drop Rates Carefully 2. Do not ignore historical data 3. Invest in technology Expedia Orbitz Benchmarking Channel Partner hrs Rates & Inventory City.com 4. Treat IDSs as your partners 5. Use effective channel partners Country.com 6. Automate allocation process 7. Experiment with different IDSs 8. Always focus on a mutual win, and this in turn will build trust and loyalty www.ratetiger.com
  • 24. Obrigado Thank You Pilar Sánchez Aita Tel : +34 91 127 1779 Fax: +34 91 547 7187 E-mail: pilara@ratetiger.com Web: www.ratetiger.com www.ratetiger.com

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