Corporate Consortia talks about the basic negotiable rates which are given by the travel agent to the hotel company for providing to the guests.

1. Corporate Consortia in
Hospitality Section
Let’s Get Started…

2. What Is Corporate Consortia in the
Hospitality Sector
• Consortia is a "rate negotiated between a hotel company and a travel
agency group.
• Viewership of these rates in the GDS by a TA or other GDS user is
restricted and the rate may be booked only after entry of either the
Agents or Client authorization code.
• Consortia’s have become a major player in the travel industry.
• Consortia’s is a conglomerate of travel agency members that have joined
an organization and by doing this can now increase marketing to their
customers by offering competitive rates at hotels worldwide.

3. How Does a Corporate Consortia Works
They are usually found using one global name (ABC Corporate Services), or
continuing to keep their name, but using the relationship and tools of the
program that they are members of. Each program has a list of requirements
and fees to participate, but the standard requirements include:
• A minimum of 10% off the lowest single published rate (Rack or
Corporate)
• Rate Parity
• Last room availability guarantee
• 10% commission to the Agent
• All rates quoted are to be guaranteed for the entire year starting from Jan
1 – Dec 31, unless otherwise noted.

4. ABC Global Services
For more than 30 years, ABC Global Services has been the leading provider of
travel-related products and services to the global travel agency and corporate
communities. ABC’s Premier Hotel Program is the industry leader, used by more
than 7,900 agency locations in 67 countries and driving millions of room nights per
year. More information is available at www.abcglobal.travel.
• ABC Represents 70% corporate and 30% leisure business
• More than 30,000 hotels participate in ABC’s programs
• ABC agencies include: Altour International, Boeing Travel Management, Casto
Travel, Frosch International, Garber Travel, Protravel International, Tzell Travel,
Ultramar Travel Management and Valerie Wilson Travel.
• ABC also provides its hotel programs to prestigious agency networks including:
ATPI, Lufthansa City Center, MAST, Nexion and Thomas Cook.

5. Considerations & Recommendation for
Participation
• located in a primary suburb or metro; Airport; Tertiary, Secondary or
Destination area(s)
• Business Travelers – although many programs book leisure travelers
• 60 or more guestrooms/suites recommended, preferred inside entrances,
and featuring typical Business traveler expected amenities – HSIA, Cable
TV, Iron/Board, Coffee Maker, Fridge etc.
• Minimum 2 Diamond AAA rated or equivalent and retain a QA Score of
475 up
• within a 5-10 mile radius of major businesses, government facilities, and
Int’l or Regional Airports
• hotel’s competitors in the local market are with major brands

6. Benefits in participating
• Increased Bookings • Increased Visibility • Increased
Revenue • Marketing Opportunities
• Prominent GDS Display with Preferred Rate Codes provided by each
Consortia in all 4 GDS
• On-line Hotel Directory Listings with Logo and up to 3 or more Photos
• Highlighted listing in printed directories distributed to Corporate Clients
• Listing in Online Hotel Portals for easy hotel/rate searching by Agent with
access to GDS

7. Article

8. The Emergence of Hotel Consortia as
Transorganisational Forms
Angela Roper (1995)
Methodology: - It consists of two levels: -
 Industry Level
• It creates a holistic view of the UK hotel sector, its various participants and the
structures and behaviour within.
• Used to identify & evaluate the key forces which were perceived to drive
competition in the industry.
• Recognized that industrial forces are not only competitive, but the firms also
operate co-operatively.
 Strategic Group Level
• Hotel consortia was considered to be a heterogeneous organisation (i.e.,
clubbing different things together.)
• Few dimensions indicated to the identification of the product-market scope for
each organisation as well as the formal administrative structure of an enterprise.

9. Sampling
• Designed to hold information regarding portfolios of sample hotel
consortia.
• Allowed not only portfolio information to access efficiently but also data
analysis in a relational manner.
• Use of relational database enabled the tracking of changes in membership
characteristics
• Hotels which belonged to more than one consortium were termed
“multiple members” whereas the hotels owned/operated by a hotel
company were termed “corporate members”.

10. Conclusion
• In relation to the competitive components of the hotel sector, this
investigation has shown that, for firms to compete, they must seek to
achieve economies of scale (to minimize the bargaining power of both
supplier and buyer groups).
• In addition, in order to gain demand stability, they must endeavor to
access a broad market base.
• It can be surmised that, as the present conditions in the industry prevail,
many firms, including hotel consortia will be unable to gain significant
competitive advantage.

11. Case Study
Hotel Huntington Beach, California

12. Sabre Hotels RPF
Hotel Huntington Beach became a Sceptre client in the fourth quarter of
2009. The hotel had issues with the previous GDS provider in getting
negotiated rates loaded correctly and overall sales initiatives were lacking.
Sceptre services implemented several initiatives with the hotel. The Director
of Sales was provided the tools to begin capturing business and government
travel segments. Sceptre implemented consortia marketing and loaded and
mapped negotiated rates that the hotel has in their website booking tool
and the GDS. This channel optimization allowed website booking of groups,
special events and promotional opportunities.

13. Capturing Untapped Opportunities (Hotel
Huntington Beach, California)
Outcomes:
-The hotel saw a 15% increase in room night bookings for 4th quarter 2009
over 2008.
-Hotel Huntington Beach has also driven more revenue from website
booking
-Increased room night bookings 15% in first 3 months

14. References

15. Thank You
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