Travel Industry and Barter
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Travel Industry and Barter

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www.ormita.com

www.ormita.com
Barter and the Travel Industry

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    Travel Industry and Barter Travel Industry and Barter Presentation Transcript

    • WHO WILL YOU BILL FOR YOUR UNSOLD SPACE, EMPTY HOTEL ROOMS OR SEATS?
      • Shrinking market
      • Competitors discounting rooms
      • Price-sensitive customers shopping around
      • Constant upgrade costs
      • Competing destinations
      • Maintenance
      • Seasonality
      • Natural disasters
      ISSUES FACING THE TRAVEL INDUSTRY
    • YOUR CHALLENGE
      • Find new customers
      • Maximize occupancy
      • Grow income
      • Increase profitability
      • Enhance brand image / value
      • Remain competitive
    • UNSOLD TIME = LOST REVENUE
      • Every unsold hour 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
    • DISCOUNTING IS NOT THE ONLY ANSWER
      • If everyone discounts then the overall perception of the market price will go down
      FACT #1
      • Competitors with bigger pockets could ‘out-discount’ (and out-last) you
      FACT #2
      • Once you become known for discounting it is very difficult to increase your price
      FACT #3
    • USING YOUR UNSOLD SPACE TO BUY ADVERTISING
    • WHAT IF YOU COULD SWAP YOUR EMPTY ROOMS FOR ADVERTISING IN …
      • Television
      • Expos and Events
      • Radio
      • Public Relations
      • Newspapers
      • Magazines
      • Internet Websites
      • Billboards & Indoor
    •  
    • BARTERING …
      • 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
    • You want them but they do not want you You want a lot of what they have, they only want a little of what you have You want to buy now, they want to buy later Unfortunately direct barter can be extremely difficult to organise by yourself
    • ORMITA IS INDIRECT BARTER Retail Shop Radio Station Hotel Manufacturer Hospital Accounting Firm
    • ORMITA CAN PROVIDE YOU WITH A GLOBAL ADVERTISING CAMPAIGN WITHOUT YOU NEEDING TO SPEND CASH
      • Canada
      • China
      • Hong Kong
      • India
      • Jordan
      • Mexico
      • Poland
      • Thailand
      • Turkey
      • USA
    • GET NEW CASH PAYING CUSTOMERS!
      • By bartering your unsold hotel rooms, event tickets, entertainment or space for advertising you can position your brand to reach desirable corporate, group and leisure accounts.
      • You pay for your advertising using your own unsold capacity – not cash .
    • OTHER BENEFITS
    • BARTER REPRESENTS A GUARANTEED SALE
      • When you make a purchase using cash you have no guarantee that you will get a new customer to buy from you
      • When you buy using barter credit then there is a guarantee that someone else in the network will buy from you
      • When you buy using cash you may not get any cash customers back
    • 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)
    • INTEREST FREE FINANCE
      • Bartering offers finance without interest
        • (buy now – repay with barter)
      • Banks offer finance with interest
        • (buy now – repay with cash)
    • ORMITA :
      • Finds you media on barter and negotiates on your behalf
      • Lets you buy media now and repay using your hotel rooms later
      • Records the value of each transaction when it takes place
    • TYPICAL CONCERNS ABOUT BARTERING
    • DO I HAVE TO SELL FIRST?
      • No :
      • You can buy media first and sell later
      • Our line of credit is interest-free
    • WILL I LOOSE CASH CUSTOMERS?
      • 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
    • 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
    • WHAT HAPPENS TO THE EXTRA THINGS THESE PEOPLE WANT?
      • Extra expenses on a customers bill are settled directly by the customer with cash or credit (room service, phone calls, gift shop purchases etc)
    • 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
    • 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
    • ARE THERE TAX ISSUES?
      • No more than there would be for cash:
      • Income tax is paid on profit
        • If you spend all the barter income that you earn you have no barter profit (and therefore no income tax)
      • Sales tax / GST / VAT must be paid according to your government regulations
      • Present in 21 countries and growing
      • Customers from 54 countries
      • More than $2.6 billion USD in barter deals
      • Visit our website at: www.ormita.com
      THANK YOU! Australia +61 7 3149 3152 Canada +1 514 700 0180 Cina +86 755 3301 1789 Egitto +20 16 777 1 222 Germania +49 931 3069 99280 Grecia +30 211 198 2720 Hong Kong +852 5808 2688 Indonesia +62 817 345 516 Iran +98 218 850 2193 Italia +39 015 952 6193 Messico +52 55 5293 8500 Nuova Zelanda +64 9 974 9159 Pakistan +92 300 845 2403 Polonia +48 32 444 9155 Sud Africa +27 10 500 9060 Svezia +46 8 4083 9907 Turchia +90 542 786 5969 UK +44 203 355 1381 USA +1 412 346 6142 Zambia +260 97 789 5034