Making the most of IDS as part of your revenue management strategy

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  • + whatidiscover whatidiscover 6 months ago
    Good question, luigi.visit. You might want to ask eRevMax. I do not work for them. I am not using SlideShare to promote them.
  • + luigi.visit luigi.visit 6 months ago
    Interesting! It could be also interesting to explain the website’s point of view. How to integrate with RT...
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Making the most of IDS as part of your revenue management strategy - Presentation Transcript

  1. “ Making the most of IDS as part of your Revenue Management strategy” SMILE Conference May 2008 eRevMax Inc, Sascha Hausmann, COO
  2. “ Making the most of IDS as part of your Revenue Management strategy”
    • Where when and why do you book your travel and how do you do it?
    • How Internet Distribution Systems impact the way hotels need to view revenue management
    • “ To position or not to position…” - Parity versus maximizing opportunities at producing IDS
    • Recent booking trends and the impact on revenue management  
    • Summary: Right Time, Right Place, Right Price. Revenue Management in a world wide web.
    • Rate Tiger Product Suite
    • WHO ARE WE ?
    • RATE TIGER – We build software for hotels (since 2002) that
      • Simplifies competitor analysis
      • Centrally manages rates and availability
      • Automates revenue management
    • Products for Hotels, Hotel-Groups / Chains, Hostels and Distribution Channels
    eRevMax Inc. / Rate Tiger - Key Facts
    • Where:
    • 44% of the UK population bought online in 2007 (BBC)
    • 53% of all travel in the US was bought online in 2007 (Phocus Wright)
    • 35% of all travel in Europe was bought online in 2007 (Phocus Wright)
    • Best deals on the internet overall amongst all offered products on the web:
    • Travel ( hotels & flights)
    • Consumers have high expectations
    Where when and why do you book your travel and how do you do it?
  3. Where when and why do you book your travel and how do you do it?
    • When:
      • Internet: 24/7
      • Travel agent: During business hours
    • Why:
    • Price: PERCEPTION: cheaper on the Web
    • 24/7: much easier you can book when it’s convenient
    • Benchmarking: Compare different hotels
    • Wide choice: a wide range of shops and products
    • Quick: book within a few minutes (really ?)
    Where when and why do you book your travel and how do you do it?
    • What is Revenue Management ?
    • “ … Revenue Management is the process of understanding, anticipating and reacting to consumer behaviour in order to maximize revenue or profits… “ (Wikipedia, April 2008)
    “ How Internet Distribution Systems impact the way hotels need to view revenue management” and not the art of being the cheapest!
  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
    • Today, the consumer decides differently …
    • Internet bookings: 2000: 3-5% 2007: 50% (US) / 35% (EU)
    (Wikipedia) “ How Internet Distribution Systems impact the way hotels need to view Revenue Management”
  5. “ How Internet Distribution Systems impact the way hotels need to view Revenue Management”
  6. “ 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
  7. “ 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’t optimise rates Can optimise rates; different 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 hotels using rate parity METASEARCH: Transparency to consumers
  8. 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 placement More decisions to be made / more updates to be processed More decisions to be made / more updates to be processed More time consuming and more confusing
  9. 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
    • Right Place – Research:
    • Global vs. national vs. regional extranet?
    • Offline vs. online?
    • Question: which extranets produce at the Right Time?
    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
    Summary: Right time, right place, right price. Revenue Management in a world wide web.
    • 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?
    • How or how often should I update my distribution channels?
    • How do I monitor results?
    … Ask yourself… Online RT Strategy
  10. Market – Online Distribution Market Overview Demand Segments Channels of Distribution Airline CRS (GDS) Switch Hotel CRS Hotels Travel Website Travel Agents Sabre WorldSpan Amadeus Galileo Pegasus Chain CRS Representation Company Chain Franchises Independent Properties Event Management Companies Call Centers Travel Websites CORPORATE TRAVEL GROUP CONVENTION LEISURE TRAVEL Hotel/Motel Groups Independent Hotels Resorts Inns, B&B’s RT Integration RT Integration I-CRS TRADITIONAL INTERNET BASED Who will help to manage this chaos ?
  11. RateTiger Product Suite Helping hoteliers to better manage online revenue and distribution ... RT Strategy (coming soon)
  12. Products
    • 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
    RT Strategy
  13. Products
    • Rate & Inventory Allocation
      • Manage multiple travel websites in one screen
      • Optional status quo (Pro version)
      • Currently over 250 sites
      • Several packages available
    RT Strategy
  14. Products
    • Combination of RTShopper and RTAllocator
      • From competitor analysis to rate update
      • Additional functions
      • Available in two versions
    RT Strategy
  15. Products
    • Low cost revenue management system
      • Based on how hotels determine rates
      • Three strategies
      • Lowest rate guarantee available for all strategies
      • Additional features
    RT Strategy RT Strategy (coming soon)
  16. Products RT Strategy
    • The Corporate products:
      • RTCorp: your single interface solution for managing a chain of hotels
      • RTWeb: your competitive intelligence report provider for travel websites
      • RTConnect: your global distribution management switch
  17. … OR very simple … Without RateTiger With RateTiger Time consuming process? You can’t add more sites? Confused? With RateTiger you will Manage More by Managing Less
  18. Thank You UK Sales Office: eRevMax Monmouth House, 3rd Floor, 40 Artillery Lane London E1 7LS, United Kingdom Tel: +44 (0) 20 7422 7528 Fax: +44 (0) 20 7375 0341 E-mail: [email_address] Web: www.ratetiger.com

+ whatidiscoverwhatidiscover, 7 months ago

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