Every unsold room represents an opportunity to earn revenue that you will never recover
Your occupancy rate is limited by the number of people who see you or hear about you
DISCOUNTINGIS NOT THE ONLY ANSWER
If everyone discounts overall perception of the market price will go down
Competitors with bigger pockets could out-discount you
Becoming known for discounting will destroy brand image
USING YOUR EMPTY HOTEL ROOMS TO BUY ADVERTISING
SWAP YOUR EMPTY ROOMS FOR ADVERTISING IN… www.ormita.hk
Conserves your CASH
Allows you to maintain advertising budget regardless of cash sales
Lets you test new markets where putting cash on the line may be a risk
GET NEW CASH PAYING CUSTOMERS!
By bartering your unsold hotel rooms for advertising you can position your brand to reach desirable corporate, group and leisure accounts.
You pay for your advertising using hotel rooms – not cash.
YOU KEEP THE DIFFERENCE
The difference between the voucher and the room cost is called “breakage”
E.g. You barter a $100 gift voucher but a one night stay may be worth $90.
No refund is given on an unused portion of a voucher
Customers will often pay you extra cash if the voucher is slightly less than the total bill
E.g. You barter a $100 gift voucher but a one night stay may be worth $110.
PROVIDES MORE REFERRALS
Creates more credibility than advertising alone
Travellers often view referral information before making online bookings
Builds consumer trust
May lead to additional cash business (and often - repeat business)
TYPICAL CONCERNS ABOUT BARTERING
DO I HAVE TO SELL FIRST? No : You can buy media first and sell your hotel room nights later Our line of credit is interest-free www.ormita.hk
WILL I LOOSE CASH CUSTOMERS? No : Contractual provisions to only send guests during certain times of year (e.g. when you are less busy) If one of our customers has stayed with you in the past 12 months then you have the right to decline them on barter www.ormita.hk
WHAT TYPE OF GUESTS WILL YOU SEND ME? Ormita operates a “business to business” barter exchange network so guests will typically be corporate business travellers and/or company owners & managers who are on vacation Contractual provisions can be put into place regarding quality of the guests www.ormita.hk
WHAT HAPPENS TO THE EXTRA THINGS THESE PEOPLE WANT? A customer still guarantees their room and extras with a credit card Extra expenses on a customers bill are settled directly by the customer with cash or credit (room service, phone calls, gift shop purchases etc) www.ormita.hk
IS IT DIFFICULT FOR MY STAFF TO MANAGE? No : You can send end-users electronic or printed gift vouchers to present at your reception Typically: a minimum 7 days advance notice is given to you for guest bookings www.ormita.hk
IS RECORD KEEPING EASY? Yes: You receive a monthly statement which shows all purchases and expenses Works just like a bank account! You set up a “barter” bank account Expenses paid using barter dollars are debited from this account Sales made on barter are credited to this account www.ormita.hk
Ormita Barter Process www.ormita.hk
Recent Trade StoriesDec 2010 – Jan 2011 BlueScope Steel Purchase: AUD25,000 hotel vouchers Sell: Remaining steel Steel was sold to non-cash customers of BlueScope Won customers from competitors M.A.C. Cosmetics Purchase: €68,175 Advertising Sell: Obsolete Stocks in warehouse Attract more cash customers without spending cash Nokia Electronics Purchase: USD89,715 Printing and Packaging services Sell: Incorrect packaging and product backlog Turn “dead capital” into useful resources www.ormita.hk
Contact Alex Wong Tel.: 9752 4863 Email: firstname.lastname@example.org Byron Fan Tel.: 6574 0715 Email: email@example.com Freeman Ho Tel.: 6141 9020 Email: firstname.lastname@example.org Wendy Mok Tel.: 6231 6638 Email: email@example.com www.ormita.hk