HM110Lecturenotes9

HM110Lecturenotes9 - Distribution Channels Online Travel...

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Distribution Channels – Online Travel & E-Commerce - Hotel Lecture Notes 9
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Recent study showed why people buy Travel On-line at least: 9% 16% 20% 54% 0% 10% 20% 30% 40% 50% 60% Customer Service Ease of Use Reliability Cost Savings
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Travel & Tourism creates over 238 Million Jobs The Industry contributes 9.9% (US$ 5,890bn) of Total Gross Domestic Product in 2008 and is expected to rise to 10.5% in 2018 More than 400% increase since 1997 of internet purchases in Travel.
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Hotel Bookings on the Web $1.8 Billion in 2000 $6 Billion in 2002 9% of All Hotel Bookings in 2002, but Expect It To Be 20% by 2005 82% of Bookings Through Own Sites Increasing trend every day!
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Distribution Channels
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Global Distribution Network
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Central Reservations Systems (CRS) Internal Company Systems External Channels Referral Services/Reservations Best Western Utell Lexington Referral Consortium/Membership Organization Leading Hotels of the World Preferred Hotels Relias & Chateaux
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E-Commerce
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Internet Reservations Systems -Disintermediation Travelweb Expedia Sabre’s Travelocity Priceline.com Hotwire.com Hotel Commissions to TA’s Best Western Marriott TA Response - Carlson Companies
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Key Concept: Disintermediation Role of Intermediaries Marketplace Inventory Prices Knowledge Transaction
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HM110Lecturenotes9 - Distribution Channels Online Travel...

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