The document discusses Active International's Cash Cross Purchase Program, which is designed for hospitality clients like hotel owners. Under this program, when hospitality clients purchase goods like TVs from Active for their normal cash price, they receive an additional commitment from Active to spend a percentage of the purchase price (typically 10%+) on cash bookings at their hotel properties. This enables hospitality clients to efficiently invest in property improvements while also improving revenue. Active is able to provide this benefit through trading with suppliers, often paying in a combination of trade credits and cash.
Airbnb is an American based online marketplace company that connects travellers with the local inhabitants of a place who wants to rent their property to earn money. Airbnb provides services to the travellers so that they can get an affordable place and they get a chance to know the local residents of the place.
Read our full Bog : https://www.appsrhino.com/how-airbnb-work-business-model-and-revenue-model/
Companies corporate identify is seemed to be in its brand. KS Designers will provide you a effective brand design that represents your companies identify and goals. A successful corporate brand design will give you instant credibility and lasting recognition.
This document discusses using incentives and rewards to engage customers and drive desired behaviors. It provides examples of promotions that can incentivize product trials, satisfaction guarantees, repeat purchases, market research participation, and more. The company described offers promotional management platforms and services including rewards, insurance, and reporting. It highlights benefits like real-time rewards, security, communications, integration with clients, and data collection. Case studies are presented showing how their solutions have helped brands meet objectives for various promotions.
This document discusses four ways to implement geo-aware dynamic display ads. The first is to use location features native to the ad server or DSP. The second is for the ad itself to do an IP lookup. The third is to identify the visitor's location contextually based on pages viewed. The fourth is to capture location from signup forms. Implementing geo-aware ads can improve relevance and boost clicks and conversions for advertisers in industries like automotive, retail and travel.
This document provides information about the services offered by Jinnius, a creative advertising agency located in Karachi, Pakistan. It lists the CEO and various department heads, and describes services such as holographic advertising, branded/normal SMS services, website design/development, software development, missed call solutions, social media marketing and email marketing. Contact information is provided at the end.
Williams interactive mobile marketing with pricingDarion Wheeler
Williams Interactive provides precision direct marketing solutions using online and offline channels to help clients maximize their advertising spending. They employ experienced marketing professionals and technologists to provide powerful marketing solutions. Mobile marketing, also known as keyword marketing, allows customers to text a custom keyword to an number to join a business's VIP club and receive offers, alerts, and coupons via text, significantly increasing store traffic. It is an effective marketing channel as people are attached to their phones and open to convenience.
Hotels724 is real time booking platform for hotel sub-facilities like SPA, Restaurants and Meeting Halls. In hotels724, hotel profile is divided into facility specific sub-profiles which provides access to photos, description, terms of use, service portfolio, service prices, availability and user reviews and reservation of that sub-facility.
Currently hotel SPA facilities are accepted to create and manage their profiles. Hotels724's business model depends on commision fees charged from facilities for each booking done.
Airbnb is an American based online marketplace company that connects travellers with the local inhabitants of a place who wants to rent their property to earn money. Airbnb provides services to the travellers so that they can get an affordable place and they get a chance to know the local residents of the place.
Read our full Bog : https://www.appsrhino.com/how-airbnb-work-business-model-and-revenue-model/
Companies corporate identify is seemed to be in its brand. KS Designers will provide you a effective brand design that represents your companies identify and goals. A successful corporate brand design will give you instant credibility and lasting recognition.
This document discusses using incentives and rewards to engage customers and drive desired behaviors. It provides examples of promotions that can incentivize product trials, satisfaction guarantees, repeat purchases, market research participation, and more. The company described offers promotional management platforms and services including rewards, insurance, and reporting. It highlights benefits like real-time rewards, security, communications, integration with clients, and data collection. Case studies are presented showing how their solutions have helped brands meet objectives for various promotions.
This document discusses four ways to implement geo-aware dynamic display ads. The first is to use location features native to the ad server or DSP. The second is for the ad itself to do an IP lookup. The third is to identify the visitor's location contextually based on pages viewed. The fourth is to capture location from signup forms. Implementing geo-aware ads can improve relevance and boost clicks and conversions for advertisers in industries like automotive, retail and travel.
This document provides information about the services offered by Jinnius, a creative advertising agency located in Karachi, Pakistan. It lists the CEO and various department heads, and describes services such as holographic advertising, branded/normal SMS services, website design/development, software development, missed call solutions, social media marketing and email marketing. Contact information is provided at the end.
Williams interactive mobile marketing with pricingDarion Wheeler
Williams Interactive provides precision direct marketing solutions using online and offline channels to help clients maximize their advertising spending. They employ experienced marketing professionals and technologists to provide powerful marketing solutions. Mobile marketing, also known as keyword marketing, allows customers to text a custom keyword to an number to join a business's VIP club and receive offers, alerts, and coupons via text, significantly increasing store traffic. It is an effective marketing channel as people are attached to their phones and open to convenience.
Hotels724 is real time booking platform for hotel sub-facilities like SPA, Restaurants and Meeting Halls. In hotels724, hotel profile is divided into facility specific sub-profiles which provides access to photos, description, terms of use, service portfolio, service prices, availability and user reviews and reservation of that sub-facility.
Currently hotel SPA facilities are accepted to create and manage their profiles. Hotels724's business model depends on commision fees charged from facilities for each booking done.
Hotels724 is real time booking platform for hotel sub-facilities like SPA, Restaurants and Meeting Halls. In hotels724, hotel profile is divided into facility specific sub-profiles which provides access to photos, description, terms of use, service portfolio, service prices, availability and user reviews and reservation of that sub-facility.
Currently hotel SPA facilities are accepted to create and manage their profiles. Hotels724's business model depends on commision fees charged from facilities for each booking done.
Hospitality Marketing Concepts (HMC) is a leading provider of loyalty marketing programs and database management for hotels. HMC partners with over 1,250 hotels in 62 countries to develop customized loyalty programs that drive revenue. HMC's full-service approach includes database development, CRM technology, IT services, member communications, and after-sales support. On average, HMC's partner hotels see a 35-60% increase in F&B revenue and a 20-35% increase in F&B profits through acquiring and engaging repeat local customers.
owambe is a deal and discount marketplace that combines social networking with real time booking of hotels, event venues, meeting rooms, resorts, event tickets and event vendors.
Gajanan strategic hotels and singhania hotels jvGajanan Shirke
This document provides an overview of a proposed 10000-15000 sq ft hotel project in Bharatpur, Rajasthan, India. The hotel will have a minimum of 50 rooms and will be located near attractions like Keoladeo National Park. It will benefit from being the first five-star hotel in Bharatpur and from government initiatives to promote tourism in the area. The project will include a hotel block with rooms, restaurants, meeting spaces, and other amenities spread across constructed area of 150000 sq ft.
The document provides an overview of the tourism industry in India. It discusses key trends such as rising capital investments in travel and tourism expected to reach INR 5546.5B by 2028. International tourist arrivals are also forecasted to grow to 30.42M by 2028. Domestic tourism is growing at an average rate of 13% annually due to factors like increased spending and interest in leisure travel. The document presents statistics on capital investments, international tourist arrivals, and domestic tourist visits between 2000-2016 to support the discussed trends in India's tourism industry.
The document summarizes the features and benefits of ResAvenue, a hotel booking engine and payment gateway. It provides multi-lingual and multi-currency functionality, allowing hotels to accept reservations from around the world. It offers a seamless integration with hotel websites and a customizable booking interface. ResAvenue's payment options include credit cards, net banking, debit cards, and other options to maximize booking conversions. It aims to help hotels close deals and generate revenue before guests check in.
Spyrou Philoxenia is a Greek hospitality consulting firm that aims to help hoteliers increase profits with zero risk. They offer a range of services including sales, marketing, website development, and distribution through online travel agencies. Their team has over 40 years of experience in the hotel industry. They promise to strengthen their clients' market position, boost sales revenue, and create customized marketing strategies.
Ankush Group of Hotels provides bespoke sales and marketing services for 4-star hotels and resorts across India. It has exclusive rights to sell and market the services of 4 partner hotels, and ensures quality service and customer satisfaction. The company aims to expand its network of partner hotels to 25 by 2018. It charges partner hotels a 25% commission on total revenue and competes against other online travel agents by offering exclusive inventory and superior after-sales service.
VOILÀ Hotel Rewards is a global loyalty program for independent hotels with over 250 participating hotels worldwide. It aims to help independent hotels compete with large hotel chains by shifting guests from online travel agencies and travel agents to direct booking channels through a points-based loyalty program. Hotels that join VOILÀ can customize their loyalty program through VOILÀ's turnkey services while maintaining their individuality and operational freedom.
An elevated luxury travel platform called FOMO is proposed to address issues in the luxury travel industry and provide opportunities for digital asset investors, influencer marketing, and discounted luxury travel experiences. The platform will offer curated travel experiences at exclusive rates, a global concierge service for members, and travel advice from influencers. It aims to serve modern connoisseurs including digital entrepreneurs, young professionals, and socialites seeking luxury experiences. FOMO will partner with luxury resorts and hotels and leverage influencer marketing to drive bookings and commissions. The founders have already achieved initial traction and projections show potential for millions in revenue over time.
Arura Hospitality is a hotel management company that operates and manages hotels to provide guests with an extraordinary experience. They have extensive experience in the hospitality industry and provide a full suite of management services including marketing, sales, human resources, accounting and more. Their goal is to optimize profits and returns for hotel owners while relieving them of day-to-day responsibilities. They aim to achieve this through strategic business planning, experienced personnel, volume purchasing discounts, and multi-channel marketing efforts.
RedStar provides digital loyalty program solutions that help businesses retain and grow their customer base. Loyalty programs reward frequent customers, benefiting both customers with a better shopping experience and businesses by nurturing target markets. RedStar's cloud-based loyalty platform offers flexible campaign types and a full package for operating rewards programs both front-end for customers and back-end for businesses. The RedStar app connects consumers to deals and promotions from partner businesses.
RedStar provides digital loyalty program solutions that help businesses retain and grow their customer base. Loyalty programs reward frequent customers, benefiting both customers with a better shopping experience and businesses by nurturing target markets. RedStar's cloud-based loyalty platform offers flexible program types and a full suite of tools for businesses to operate rewards programs and target customers through a merchant app.
The document summarizes Wyndham Hotel Group, the world's largest hotel company. It has over 7,100 hotels in more than 66 countries representing over 608,000 rooms. Wyndham offers 15 hotel brands spanning different price points and segments. It provides extensive support services to its owners, including pre-opening support, operational support through on-site consultations and a support desk, revenue management services, and development and sourcing assistance. Wyndham also markets its brands through various channels and its Wyndham Rewards loyalty program.
HelmsBriscoe is the largest site selection company for meetings and events. They represent clients to find the best hotels based on clients' needs and criteria. HelmsBriscoe saves clients time by taking on the site selection process. As the highest volume purchaser in the industry, they have strong negotiating power with hotels to get competitive rates for clients. HelmsBriscoe's services come at no cost to clients as they are paid by hotels.
Distinctive One provides hotel marketing, management, and consulting services. They offer membership categories for hotels that provide online marketing, direct booking capabilities, and promotional benefits. Their services aim to help hotels increase revenue and profitability through strategies like sales representation, revenue management, and digital distribution.
The future of financial services marketing communicationsChristopher Brooks
Lexden's presentation made to the PROTECT (life, health and payment insurance forum) in response to FCA consultation paper. Covering how marketing communications will change to meet consumers changing needs
The document provides an overview of various development solutions, operational services, and sales and marketing support services offered by LiveBean for hotels and hospitality projects. LiveBean assists clients with feasibility studies, concept design, pre-opening consultancy, asset management, operational audits, quality assurance programs, and sales and marketing support including audits, brand positioning, and systems optimization to improve profitability.
For e-commerce and other online enterprises wishing to offer a differentiated travel offering, via a turn-key, SaaS solution, that provides all licensing and product required to offer unbeatable value, please take a look at this PPT.
Hotels724 is real time booking platform for hotel sub-facilities like SPA, Restaurants and Meeting Halls. In hotels724, hotel profile is divided into facility specific sub-profiles which provides access to photos, description, terms of use, service portfolio, service prices, availability and user reviews and reservation of that sub-facility.
Currently hotel SPA facilities are accepted to create and manage their profiles. Hotels724's business model depends on commision fees charged from facilities for each booking done.
Hospitality Marketing Concepts (HMC) is a leading provider of loyalty marketing programs and database management for hotels. HMC partners with over 1,250 hotels in 62 countries to develop customized loyalty programs that drive revenue. HMC's full-service approach includes database development, CRM technology, IT services, member communications, and after-sales support. On average, HMC's partner hotels see a 35-60% increase in F&B revenue and a 20-35% increase in F&B profits through acquiring and engaging repeat local customers.
owambe is a deal and discount marketplace that combines social networking with real time booking of hotels, event venues, meeting rooms, resorts, event tickets and event vendors.
Gajanan strategic hotels and singhania hotels jvGajanan Shirke
This document provides an overview of a proposed 10000-15000 sq ft hotel project in Bharatpur, Rajasthan, India. The hotel will have a minimum of 50 rooms and will be located near attractions like Keoladeo National Park. It will benefit from being the first five-star hotel in Bharatpur and from government initiatives to promote tourism in the area. The project will include a hotel block with rooms, restaurants, meeting spaces, and other amenities spread across constructed area of 150000 sq ft.
The document provides an overview of the tourism industry in India. It discusses key trends such as rising capital investments in travel and tourism expected to reach INR 5546.5B by 2028. International tourist arrivals are also forecasted to grow to 30.42M by 2028. Domestic tourism is growing at an average rate of 13% annually due to factors like increased spending and interest in leisure travel. The document presents statistics on capital investments, international tourist arrivals, and domestic tourist visits between 2000-2016 to support the discussed trends in India's tourism industry.
The document summarizes the features and benefits of ResAvenue, a hotel booking engine and payment gateway. It provides multi-lingual and multi-currency functionality, allowing hotels to accept reservations from around the world. It offers a seamless integration with hotel websites and a customizable booking interface. ResAvenue's payment options include credit cards, net banking, debit cards, and other options to maximize booking conversions. It aims to help hotels close deals and generate revenue before guests check in.
Spyrou Philoxenia is a Greek hospitality consulting firm that aims to help hoteliers increase profits with zero risk. They offer a range of services including sales, marketing, website development, and distribution through online travel agencies. Their team has over 40 years of experience in the hotel industry. They promise to strengthen their clients' market position, boost sales revenue, and create customized marketing strategies.
Ankush Group of Hotels provides bespoke sales and marketing services for 4-star hotels and resorts across India. It has exclusive rights to sell and market the services of 4 partner hotels, and ensures quality service and customer satisfaction. The company aims to expand its network of partner hotels to 25 by 2018. It charges partner hotels a 25% commission on total revenue and competes against other online travel agents by offering exclusive inventory and superior after-sales service.
VOILÀ Hotel Rewards is a global loyalty program for independent hotels with over 250 participating hotels worldwide. It aims to help independent hotels compete with large hotel chains by shifting guests from online travel agencies and travel agents to direct booking channels through a points-based loyalty program. Hotels that join VOILÀ can customize their loyalty program through VOILÀ's turnkey services while maintaining their individuality and operational freedom.
An elevated luxury travel platform called FOMO is proposed to address issues in the luxury travel industry and provide opportunities for digital asset investors, influencer marketing, and discounted luxury travel experiences. The platform will offer curated travel experiences at exclusive rates, a global concierge service for members, and travel advice from influencers. It aims to serve modern connoisseurs including digital entrepreneurs, young professionals, and socialites seeking luxury experiences. FOMO will partner with luxury resorts and hotels and leverage influencer marketing to drive bookings and commissions. The founders have already achieved initial traction and projections show potential for millions in revenue over time.
Arura Hospitality is a hotel management company that operates and manages hotels to provide guests with an extraordinary experience. They have extensive experience in the hospitality industry and provide a full suite of management services including marketing, sales, human resources, accounting and more. Their goal is to optimize profits and returns for hotel owners while relieving them of day-to-day responsibilities. They aim to achieve this through strategic business planning, experienced personnel, volume purchasing discounts, and multi-channel marketing efforts.
RedStar provides digital loyalty program solutions that help businesses retain and grow their customer base. Loyalty programs reward frequent customers, benefiting both customers with a better shopping experience and businesses by nurturing target markets. RedStar's cloud-based loyalty platform offers flexible campaign types and a full package for operating rewards programs both front-end for customers and back-end for businesses. The RedStar app connects consumers to deals and promotions from partner businesses.
RedStar provides digital loyalty program solutions that help businesses retain and grow their customer base. Loyalty programs reward frequent customers, benefiting both customers with a better shopping experience and businesses by nurturing target markets. RedStar's cloud-based loyalty platform offers flexible program types and a full suite of tools for businesses to operate rewards programs and target customers through a merchant app.
The document summarizes Wyndham Hotel Group, the world's largest hotel company. It has over 7,100 hotels in more than 66 countries representing over 608,000 rooms. Wyndham offers 15 hotel brands spanning different price points and segments. It provides extensive support services to its owners, including pre-opening support, operational support through on-site consultations and a support desk, revenue management services, and development and sourcing assistance. Wyndham also markets its brands through various channels and its Wyndham Rewards loyalty program.
HelmsBriscoe is the largest site selection company for meetings and events. They represent clients to find the best hotels based on clients' needs and criteria. HelmsBriscoe saves clients time by taking on the site selection process. As the highest volume purchaser in the industry, they have strong negotiating power with hotels to get competitive rates for clients. HelmsBriscoe's services come at no cost to clients as they are paid by hotels.
Distinctive One provides hotel marketing, management, and consulting services. They offer membership categories for hotels that provide online marketing, direct booking capabilities, and promotional benefits. Their services aim to help hotels increase revenue and profitability through strategies like sales representation, revenue management, and digital distribution.
The future of financial services marketing communicationsChristopher Brooks
Lexden's presentation made to the PROTECT (life, health and payment insurance forum) in response to FCA consultation paper. Covering how marketing communications will change to meet consumers changing needs
The document provides an overview of various development solutions, operational services, and sales and marketing support services offered by LiveBean for hotels and hospitality projects. LiveBean assists clients with feasibility studies, concept design, pre-opening consultancy, asset management, operational audits, quality assurance programs, and sales and marketing support including audits, brand positioning, and systems optimization to improve profitability.
For e-commerce and other online enterprises wishing to offer a differentiated travel offering, via a turn-key, SaaS solution, that provides all licensing and product required to offer unbeatable value, please take a look at this PPT.
1. What are the biggest challenges facing
providers of hotel accommodations?
One of the main challenges that the hospitality
industry faces in any market environment is
how to properly allocate money for property
improvement plans (PIP), which are the investment
plans that hotel owners and management
companies oversee in order to remain a part
of their corporate brand(s). Hotel owners and
managers want to ensure they get the highest
average daily rate (ADR) possible, and one of
the ways to do that is to invest in updating their
properties and rooms with the latest technologies
and amenities.
How are your hospitality clients utilizing
Active International’s trading programs to
meet these challenges?
We have an all-cash trading program, our Cash
Cross Purchase Program, which is designed
specifically for our hospitality clients, including
hotel owners, REITs, brands and management
companies, to enable them to efficiently
make investments in their properties while
simultaneously improving their RevPAR. Under
thisprogram,whenthey buygoodsandservicesto
meet their budgeted PIP purchasing requirements
from Active, they receive, as additional value, a
guaranteed future revenue stream in the form
of cash room bookings.
How does your corporate trading program
work?
Our hospitality clients purchase goods from
us for cash, at the same purchase price they
would typically pay and with the same terms
and conditions that they normally would get
when purchasing for cash. Additionally, we do
not disrupt the normal procurement process
and work with our hospitality clients’ existing
procuring team/agents. Where our Cash Cross
Purchase Program really impacts their bottom
line is in the commitment we make to spend a
certain percentage of the purchase (typically 10+
percent of the pre-tax purchase price) in cash
bookings (individual and new group bookings) at
their hotel property(ies). We also back fulfillment
of our booking commitments with a 50% cash-out
guarantee. It is important to note we are able to
provide the benefit of a cash revenue stream not
because we buy better, but because we trade with
our suppliers, often paying them in a combination
of our Trade Credits and cash.
How are you able to generate these cash
bookings?
The bulk of the business we book is business
travel (individual stays and groups/meetings) for
our corporate clients who hold our Trade Credits.
Our clients are Fortune 1000 corporations in
industries ranging from apparel to electronics to
HBA to media. We treat our client base as a unique
closed distribution channel and incent them to
use our hospitality clients’ hotel properties for
their travel needs by offering them Trade Credit
usage as a way to pay a portion of the costs
of their hotel stays. Importantly, we pre-clear
our corporate clients with each hotel property
(or asset manager) to insure it constitutes new
business. This avoids channel conflicts with the
hotel properties’ sales efforts, and also provides
Not Your Traditional Corporate Trading Model
Active International Discusses Its All-Cash Hospitality Solutions
Dominic Bencivenga,
Chief Sales Officer,
Travel & Hospitality at Active Travel
Dominic is responsible for Active Travel’s sales activities. Prior to joining Active
in 2001, he held senior level positions with some of the top travel companies
in the United States. He was Regional Director for Liberty Travel, Senior Vice
President, Direct Travel, President of Fugazy Vacations and Chief Operating
Officer for the World Key Agency Group.
Dominic has over 40 years’ experience in the travel industry and has served
as a member of the Leisure Travel Advisory Boards for both Starwood Hotels
and Wyndham Hotels. He’s been a frequent panelist at many conferences
sponsored by travel-related companies.
For brands that no longer own
hotels, we offer a brand media
program that delivers measureable
savings on media purchases.
In 2002, as CMO of Wynd-
ham Hotels and Resorts, I
began working with Active
International. Initially, they
offered me a traditional
barter program, i.e. rooms
for media, which didn’t
work for my business. As
part of our conversations, I
challenged them to develop
a program that would drive
revenues into our hotels. In response, Active
created the Cash Cross Purchase program. Es-
sentially, if I placed my media through Active, at
the same pricing, the same way I would place it
through my agency, they promised to deliver
new cash business into Wyndham hotels. We
did the first deal, and it worked. During my ten-
ure we placed more than $70 million in media
through Active, and they generated more than
$20 million in new cash business for Wyndham
hotels.
When I founded Aimbridge Hospitality, I was no
longer purchasing media, but I knew that Ac-
tive’s model could drive revenue and was flex-
ible enough to evolve with my needs. Active suc-
cessfully adapted their trading model for capex
purchases that I needed to make, starting with
flat-screen TVs. Once I saw that Active’s model
worked with capex purchases and delivered the
same goods at the same price while also pro-
viding the benefit of cash business in my man-
aged properties, I had my procuring agent work
with Active to purchase any capex goods avail-
able through them. To date, I’ve made millions
in capex purchases through Active and they’ve
driven millions in cash business into my man-
aged hotels.
Active consistently remains nimble amid changes
in the marketplace and continues to provide me
with strategic solutions based around my needs.
Their partnership has been incredibly valuable,
and I look forward to working with them for
years to come.
CASE STUDY
Dave Johnson, President and CEO, Aimbridge Hospitality
2. a significant benefit since we bring new business
to the properties. Once a group is cleared, we
introduce our clients to the hotels’ group sales
department to negotiate the relevant group
contract as they normally would. By allowing
direct negotiations between our clients and
hotels’ group sales department, our clients are
assured that they are getting the best pricing and
concessions, and the group sales department is
able to build valuable relationships.
While Active may offer Trade Credit usage to its
clients, it is important to note, that under our Cash
Cross Purchase Program our hospitality clients
and their hotel properties are always paid 100%
percent in cash and all bookings are always at
each hotel property’s normal ADR or normal
negotiated group rates. Trade Credit usage is
why Active is able to shift market share into our
hospitality clients hotel properties and why we
are able to always commit to providing “new”
group business.
Can you give us an example?
Assume a hospitality client’s hotel is budgeted to
purchase TVs and its procuring group/agent has
determined a purchase price of $1,000,000. If the
hotel buys its TVs in a normal cash transaction
it will pay $1,000,000 and receive the TVs. If,
however, the hotel purchases the same TVs at
the same pricing through Active’s Cash Cross
Purchase Program, it will pay the same $1,000,000
in cash, receive the same TVs, and as an extra
benefit will also receive a commitment from
Active to spend $100,000 in cash at the hospitality
client’s designated hotel properties in the form of
bookings (individual and new groups).
What can a hotel purchase from Active?
Under our Cash Cross Purchasae Program we
currently have available a variety of capex goods
and services to help our hospitality clients meet
their PIP investments, including bedding, TVs,
TV mounts, indoor/outside lighting and LED
retrofitting, stone/quartz and tile, guest room
connectivity devices, recycling and sustainability
programs, and digital signage. We are also working
to expand our product line to include opex goods.
Are there any special accounting rules?
No. Since all bookings under our Cash Cross
Purchase Program are 100% cash business, there
are no special accounting rules and no credits
to manage. Our Cash Cross Purchase Program is
very easy to administer and track the benefits.
We also provide detailed quarterly reporting of
all bookings made by us.
Are you discounting rates?
No, there is no discounting involved in our
programs so brand and rate integrity are always
assured. Further, although we are not a travel
agency, we have a full service reservation center
and meetings and events department so all
individual bookings are made by us and all group
bookings come through us.
How has demand for Active’s trading
programs grown over time? And how have
the trading programs evolved over time?
We’ve had two distinct trading programs over
the past 10 years. Our traditional barter program
provided liquidity and value recovery benefits
programs, e.g. involving the issuance and/or
exchange of hotel credits or other form of credits,
which are programs largely geared to increase
liquidity and recapture the value of unsold room
nights.
In fact corporate trading is a very flexible model
which has evolved to meet the changing needs of
our clients and marketplace conditions. We are
very creative and routinely customize our trading
programs to meet the specific needs of each
client. The second misconception is that our travel
business is limited to hotel accommodations only.
In fact our corporate trading models work well
with any travel provider, including cruise lines,
airlines and rental car companies.
Do you also work with brands that no longer
own hotels, i.e. have become franchisors?
Absolutely. For brands that no longer own
hotels, we offer a brand media program that
is a simple step to implement and delivers
transparent savings on media purchases to
deliver proportionate savings to each franchisee
contributing to the brand marketing fund.
Do you work with travel providers other than
hotels?
Yes, we work with all travel providers, including
airlines, cruise lines and rental car companies.
to our hospitality partners. If hotels had empty
rooms and not enough cash to buy the goods and
services they needed to meet PIP requirements,
they were able to monetize their empty room
inventory to purchase the goods they needed.
That works quite well for hotel owners in down
markets or when confronted with unbudgeted
needs.
But in a strong economy, when occupancy and
ADR are high, the traditional barter program
provides less obvious value, and in fact can be
a drag on RevPAR. So we created our Cash Cross
Purchase all-cash trading program which delivers
a committed revenue stream in the form of cash
bookings and improves RevPAR as we explained
earlier. Since we made that change, our Cash Cross
Purchase Program has rapidly expanded. We now
have more than 50 participating hotel owners,
management companies, REITS and brands, who
book more than 45,000 room nights each year,
and are confident that the benefits delivered in
the form of new cash revenues will resonate with
providers of hotel accommodations regardless of
the market environment.
What is the biggest misconception about
corporate trading?
The number one misconception is the belief that
corporate trading includes only traditional barter
We have a program designed specifically for hotel owners and management
companies to enable them to efficiently make investments in their properties
while simultaneously increasing their ADR and RevPAR.
About Active International
The global leader in corporate trade, Active International uses its proprietary corporate
trading model to, among other things, create programs that increase value and market share
by bringing new cash business to travel providers, including hotel owners, management
companies, REITs and brands, as well as cruise lines, airlines and rental car companies. With
over 30 years of hospitality experience, we’ve successfully created all-cash trading programs
designed to drive market share and revenues to our travel providers. Founded in 1984, Active
International is based in New York and has offices in 14 countries.
www.activeinternational.com/capex
I began working with Active
International in 2002 when
I was CFO of Wyndham
Hotels and Resorts. There, I
worked with Dave Johnson
and Active to develop Ac-
tive’s Cash Cross Purchase
program. We told Active
they needed to build a me-
dia purchasing program
that would generate rev-
enues for our hotels. So they built a program
that allowed us to buy the same quality media
that we were already planning to buy, plus pro-
vide additional revenues in our hotels.
When I became President and CEO of FelCor
Lodging Trust, I brought the Active relationship
with me for our owned hotels. As a REIT, I no
longer needed to buy media, so we started ex-
ploring other options Ð TVs, mattresses, tiling,
signage Ð basically anything we needed to up-
grade our properties, and we looked to Active
to supply those products. We started with flat
screen TVs, and we did about $30 million in that
first deal, which, through Active’s program, also
delivered a guaranteed $6 million in new cash
business.
Active is a highly valued business partner with
whom we’d like to source all of the products our
business needs. We know we get the same prod-
uct at the same price and get the incremental
revenue from the Cash Cross Purchase program.
Additionally, we’ve forged strong personal rela-
tionships with Active that have led to life-long
friendships. That is the type of impact they have
on our business and beyond.
Rick Smith, President and CEO, FelCor Lodging Trust
CASE STUDY