The document discusses how tourism businesses can use the internet to increase profits through online distribution and booking. It notes that 85% of consumers plan to research or book travel online, but less than 5% of small tourism businesses are bookable online. By setting up online booking on a business website, unused inventory can be sold through commission-based partners, increasing occupancy from 60% to 80% and profits by over 50% in one example. The key is for tourism businesses to get online booking capabilities set up on their website to take advantage of online consumer behavior.

1. Martyn Collins OBE WINNING TOURISM BUSINESS

2. Martyn Collins O nline B ooking E vangelist WINNING TOURISM BUSINESS

5. Online search

6. Search return

7. Online Distribution

8. Online Distribution internet

9. Online Distribution internet

10. c 10,000 online enquiries for accommodation per hour! This distribution generates…

11. Profitability Assuming : 10 room hotel £50 per room / night average charge Fixed costs of £3,000 per month (£100 per night) Mortgage, rates, services, staff etc. Variable cost of £10 per room per night when occupied Breakfast, cleaning etc. Hotel open 46 weeks per year Current average occupancy of 60%

12. Profitability At 60% occupancy Revenue = £50 x 6 rooms x 7 nights x 46 weeks = £96,600 Fixed cost = £3000 x 12 months = £36,000 Variable costs = £10 x 6 guests x 7 nights x 46 weeks = £19,320 Profit / income generated = £96,600 - £36,000 - £19,320 = £41,280 10 8 7 6 5 4 3 2 1 9

13. Profitability Assuming : 10 room hotel £50 per room / night average charge Fixed costs of £3,000 per month (£100 per night) Mortgage, rates, services, staff etc. Variable cost of £10 per room per night when occupied Breakfast, cleaning etc. Hotel open 46 weeks per year Current average occupancy of 80% Now selling unsold stock through commission based partners Commission rate of 20%

14. Profitability At 80% occupancy Revenue = £50 x 8 rooms x 7 nights x 46 weeks = £128,800 [+ 34%] Fixed cost = £3000 x 12 months = £36,000 Variable costs = £10 x 8 guests x 7 nights x 46 weeks = £25,760 Profit = £128,800 - £36,000 - £25,760 - £6,440 = £60,600 An increase of £19,320 Commission = 2 rooms x £50 x 7 nights x 46 weeks x 20% = £6,440 10 8 7 6 5 4 3 2 1 9 + 236% + 60% + 0%