The document discusses electronic and online distribution strategies for hotels. It notes that a hotel's official website provides the lowest commissions at 5% for B2C and 2% for B2B bookings, making it the highest source of online revenue. It also discusses global distribution systems (GDS), online travel agencies (OTAs), and the importance of rate parity across different distribution channels to maximize bookings and revenue. The document recommends ensuring rate parity, setting strategies by channel, and continuously reviewing rates to identify the most productive OTAs.

1. 1Electronic / Online Distribution

2. Internet as a media …Market Penetration Globally seamless market, virtual storefront, 24/7, level playing field (brands / non brands co-exist)

3. Cost Effective and Enduring Marketing StrategiesInformation superhighway – hassle free – powerful selling tool. Use of portal create new marketing opportunities Low Cost, Instant Communication Virtual cost saver and Income generating, heighten brand awareness and strengthen customer relationship Content is Timeless No date expiration on content Real Time Statistic For Measuring Success of Promotion Campaign Success can be measurable and quick action can be easily implemented Time Saving Cost is marginal but saving will be substantial

4. Hotel Electronic DistributionHotel Official WebsiteElectronicDistributionGDS/IDSOn-Line Travel Agencies (OTA)

5. Hotel Official Website4“The distribution channel with the strongest ROI is your official website.”Your highest source of online revenue Lowest commission from booking generated ( 5% commission for B2C and 2% for B2B)

6. Your website is your online brand and no. 1 reference for your hotel visitors Increasingly Hoteliers offer best rate guarantees on their web sites.

7. 5Global Distribution System (GDS)Connect with 650,000 travel agencies and millions of travelersManage room rates and availability from a single pointGDS / IDS interface integrated with FastBooking EngineExposure on both offline and online travel agency worldwide via GDS ( B2B channel )

8. On-line Travel Agencies (OTA)Also called travel portal / website Market and location oriented distribution channel

9. Working based on Commission or Mark up modelCommission usually around 12% – 17%Mark up usually around 20% - 25%7What is Rate Parity ?“Today its very easy for guests to find which web site / portal is selling your best rate…”This makes it very important that you establish rate parity. Rate parity is the practice of selling the same rate on all internet / distribution channels.Example : hotel selling USD100/night (nett)Consumer spend (1 night)www.santika.comOfficial website ( 5% commission)Expedia ( 25% mark up)Agoda( 15% commission)Net RevenueUSD 87USD 80USD 95

10. 8How to maximise online bookings ...Ensure rate parity and manage all channels Rate Parity is essential today to ensure you are receiving maximum revenue from every distribution channels. By not practicing rate parity you will cannibalize revenue on other distribution channels.Set up strategies by channel and continuously review ratesIdentify which OTA is producing and try to cut down those that did not produce.

11. Practice dynamic rates …instead of selling flat rates throughout a year and create attractive packages that suits your market on the official website.