PRINT_FILE_Part_Two_Class_Two

PRINT_FILE_Part_Two_Class_Two - Session Competencies...

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Session Competencies ©  Michael Kasavana Merchant vs wholesaler models Merchant vs wholesaler models and transparent vs opaque sites. and transparent vs opaque sites. Hotel operating statistics Hotel operating statistics measurement and management. measurement and management. Key Concept: Room Pickup Policies Revenue management Revenue management  strategies,   strategies,  case problems, and solutions.  case problems, and solutions. 
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“RACK” Rate “WEB” Rate “BEST” Rate Offline Operations Online Operations Integrated Operations Offline Operations DotCom Era Electronic Distribution Offline Channels Online Channels Online Channels   -Property    -IDS (OTA)   -Web-direct   -CRO    -GDS   -CRS   -T/A    -CRS   -GDS   -Wholesalers    -Web-direct   -IDS (OTA)    -DSP   -Extranet (alt DSP) Strategy: Strategy: Strategy:    - Hold to Rates    - Variable Rates    - Stabilized Rates   - Infrequent    - Frequent    - Revenue          Discounting          Discounting           Management  Dynamic Pricing Strategies © Michael Kasavana
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PMS GDS Chain Website CRS DSP* [push] OTA Hotel Website Distribution Service Provider Channeling *Distribution Service Provider Hotel Extranet [pull] Single Image Inventory Step 1 – PMS communicates rate/inventory data (simplex or duplex mode) to CRS Step 2 – CRS communicates rates/inventory data to DSP (switch), extranet, and chain website Step 3 – DSP passes rate/inventory data to GDS & IDS sites [extranet links to select OTA sites] Step 4 – GDS sites pass rate/inventory data to additional IDS (Online Travel Agent- OTA) sites © Michael Kasavana
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Key Advantage : hotel establishes discount rate on inventory Disadvantage : gross rate created beyond hotel control Concept    Hotel sets discount percent; sells at discount to  OTA;  OTA in turn marks up rate by desired percent (~20-30%) Problem: GROSS RATE Control -hotel has no control of price guest pays Sample sites : Lodging.com Hotels.com Hotels.com Travelocity.com Expedia.com Orbitz .com Step One. Hotel sells merchant room at price below lowest published rate. This is the net rate . Step Two. Merchant marks up room to determine its new room rate. This is the gross rate . a. Merchant earns a gross margin for the sale of this room b. Consumer gets the room for discount below published rate c. Hotel receives money for distressed inventory Note Hotel sets percent; merchant earns variable rate; guest pays lower rate OTA Modeling Option OTA Modeling Option Merchant Model The MARK-UP Model Method -- > Favored by OTA agents © Michael Kasavana
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OTA Modeling Option OTA Modeling Option WHOLESALER Model Key Advantage : hotel sets net rate on inventory Disadvantage : risk to price integrity & commoditization Sample sites : (not exclusive) Priceline.com Travelweb.com Trip.com Hotwire.com Expedia.com Expedia.com Orbitz.com Concept   
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PRINT_FILE_Part_Two_Class_Two - Session Competencies...

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