Rory Montgomery from HTI (Pty) Ltd and eRes Development Corporation presented on live online distribution. Key points included: - HTI has 20 years experience in hospitality software and over 80 group customers using its CRS, CRM, PMS and POS systems. - Live online distribution provides real-time inventory and rates to multiple online channels 24/7, including OTAs, GDS, travel agents and social networks. - Rules-based rate management is used to balance objectives like maximizing revenue, encouraging occupancy, and driving quality bookings across different customer segments. - Yield management tools are used to optimize rates, inventory, and restrictions based on demand to maximize RevPAR.

1. Presented by
Rory Montgomery
Marke.ng Services Execu.ve
HTI (Pty) Ltd and eRes Development Corpora.on

2. • Introduc.on:
 20 Years in the hospitality soHware industry
 9 full .me developers – CRS, CRM, PMS and POS
 Over 80 group customers:
 Over 2 500 Proper.es on eRes
 Over 125 000 Rooms on many shelves globally
 Developed on Interna.onal standards – Open Travel
 Top 5 CRS in the world (H2C – Independent Study)
‘LIVE Online Distribu2on’

3. Property 1 Property 4
• MS – Apex PMS
P • MS – Opera PMS
P
• OS
P • OS
P
• L
G • L
G
• anque.ng etc.
B • anque.ng etc.
B
Property 2 Property 3
• MS ‐ Opera
P • MS – Apex PMS
P
• OS
P • OS
P
• L
G • L
G
• anque.ng etc.
B • anque.ng etc.
B
AGGREGATE… ‘LIVE Online Distribu2on’

4. (ADS)
Travel
Marketing Portals
Tour Operators
& Travel Agents
(GDS)
(IBE)
(Voice) (Web
Call Centre Public facing)
‘LIVE Online
Distribu2on’

5. • Call Centre  Online
• Low Cost
• LIVE Inventory and rates
• Accessible
• Rates Management
• Social Networks
• Inventory (Occupancy)
 Facebook
• Rules Based
 Twi]er
 Specials
 TripAdvisor
 Restric.ons
 Blogger etc.
 Closeouts
• OTA’s, IDS’ and GDS
 Packages
• LIVE Inventory and rates
‘LIVE Online Distribu2on’

6. • Environment
 Unstable economy and highly compe..ve
• Objec.ves
 Drive traffic to site
 Quality guaranteed bookings
• Online Distribu.on – more shelves 24 / 7
• Channel Management – rela.onships
‘LIVE Online Distribu2on’

7. • Create Calendar
• Overlay with Events
• Build Good Baseline Rate Structure (Rack / FIT)
• LINK other Rates to Baseline (Rack) (follow seasonal profile)
 Seasonal Profiles
• Discoun.ng??
 Rate Integrity / Rate Discipline
 Compe.tors Reac.on – same price posi.oning?
 Packaging – Opaque Discoun.ng?
‘LIVE Online Distribu2on’

8. • LIVE Distribu.on
• Scarcity vs. Perishability
 Balance diminishing inventory and poten.al revenue
• HIGH DEMAND – Maximise Revenue
• LOW DEMAND – Encourage Occupancy
• Encourage GTD Bookings
 Prepayment
‘LIVE Online Distribu2on’

9. Segment Discount RestricBon Channel(s)
Web 1–5 nights 5% None Company IBE
Web > 6 night 10% > 6 nights Company IBE
Tour operators 20% Contract STO’s & PCO’s
Loyalty ‐ Gold 30% Loyalty Web & CRS
OTA / IDS 35% Contract Expedia etc.
Corporate Rate – FNB 17% Contract API
(Midweek only)
Early Bird 20% > 180 days Web & CRS
(Non‐refundable Deposit)
Last Minute 40% < 48 hours Web & CRS
(Perishable / Distressed beds)
‘LIVE Online Distribu2on’

10. • RULES Based
 Rates Management and Inventory Management working in unison
• eRes Yielding Tools
 Open/Close Rate(s)
 Open/Close Inventory
 Restric.ons – Examples
 Opportunity Cost
 Hurdle Points
• RevPAR ‐ Measurement
What is RevPAR?
Room Nights SOLD x ADR
Total Room Nights (Average Daily Rate)
(Occupancy Percentage)
EXAMPLE
‘LIVE Online Distribu2on’

11. • Arrive on specific day
• Max & Min Days before Arrival
• Minimum Stay period (Across 1 or more Props)
• Maximum Stay
• Free Nights (aHer min x nights) (across 1 or more Props)
• Days of the week (Applied for dura.on of stay)
• Days of the week (Applied only on specified days)
• Promo.on etc.

12. • RULES Based
 Rates Management and Inventory Management working in unison
• eRes Yielding Tools
 Open/Close Rate(s)
 Open/Close Inventory
 Restric.ons – Examples
 Measurable – Value for Customer
 Value of Time, Convenience, Pleasure
 Sell on more shelves (channels)
What is RevPAR?
Room Nights SOLD x ADR
Total Room Nights (Average Daily Rate)
(Occupancy Percentage)
EXAMPLE
‘LIVE Online Distribu2on’

13. Example: December 2010
RevPAR 1:
ADR = $1 000
Occupancy = 50%
RevPAR = $500
RevPAR 2:
ADR = $750
Occupancy = 80%
RevPAR = $600
ADR and Occupancy have to work together…
‘LIVE Online Distribu2on’

14. • Southern Sun Group
• Abercrombie & Kent / Sanctuary Lodges
• Protea Hotels
• Vintage Africa
• City Lodge Group
• East African Treasures
• Three Ci.es Group
• Wilderness Ventures
• Signature Life
• Res247 (kulula.com)
• Relais Hotels
• & Beyond East Africa
• Rani Resorts
• Book Mauri.us
• Singita
• Ezemvelo KZN Parks
• Sabi Sabi
• And many more…
“Judge us by the companies we keep”
‘LIVE Online Distribu2on’

15. Thank you for your ;me today and
we look forward to being of assistance to you in the future!
END
Presented by: Rory Montgomery
Email: rory@h.‐systems.co.za
Telephone (JHB, RSA): +2711 803 2208
Nairobi Representa.ve: Bernard Kihiu
Email: bernard@h.‐systems.co.za
Telephone (NBI, KEN): +254 20 2726256
‘LIVE Online Distribu2on’