This excellent article I found on HospitalityNet.org provides significant insight into the issues every property manager seeking to develop an online reservation strategy has to anticipate. The article takes one through some historical pricing scenarios out to comparing some of the most recent trends in the rapidly changing online travel landscape.
HospitalityNet.org: The End of the Merchant Model as We Know It | By Max Starkov and Jason Price
While the article is informative, one of the key questions I find unanswered is: "Why does the hotel industry not work more closely with travel agencies, who charge only 10% to bring the client to their front door?". As travel agency counts "are declining at a 10% annual pace in North America", the lack of popularity of this approach is very much apparent. On the other hand, constant attacks on the entire travel agency model is also a very large contributing factor to this overall decline in operations.
To me, it seems dealing direct with the travel agent is still one of the most economical methods available for acquiring new clientelle who are likely to develop a trust relationship with the operator and will subsequently book online, direct with him.
My experience indicates that hoteliers and destination resort operators tend to neglect better exploitation of this approach while preferring to deal with participants in the more expensive "Merchant Model" where direct reservation acquisition costs range in the 18 to 40 percent range and usually involve an extended billing/payment arrangement.
Weaning one's operations of wholesale relationships is wise. However travel agencies should continue to be considered as one of the most economical approaches to filling empty rooms with satisfied clientelle, at better rates.
Sites of interest:
www.hospitalitynet.org
Hospitality eBusiness Strategies, Inc. - www.hospitalityebusiness.com
Thursday, March 24, 2005
Monday, March 21, 2005
Personal Travel Tools Enhance Online Information
Remember when travel portals were first launched on the web? At that time the industry was seeking a way to get direct access to clients thereby bypassing travel agency service providers and all those nasty commissions they used to make on airline bookings.
Well now there's a move afoot to bypass the online portals with the objective being to commoditize the delivery of pricing information for the benefit of individual travelers. New software tools are available to ease the pain of checking prices for plane tickets, hotel stays and car rentals.
The newswires have been active relative to this issue lately:
AOL Offers New Travel Service
TravelAxe Provides New Travel Tools Geared for the Individual Traveler
While AOL has yet to establish some method of making money from the service, time and business volume will obviously tell.
TravelAxe, on the other hand provides a Windows-based programm to help people gather the information and tabulate it in a safe, familiar environment. The program is intuitive, easy to install and trouble free for me, up to this point. They have apparently established agreements with the major portals with regard to commissions for them which makes their product available free of charge as well as being free of usage fees to the end user.
The industry is discovering that the internet travel sector, while being the second most lucrative internet market vertical aside from online pornograrphy, is an elusive prey with many twists to anticipate before its ultimate capture.
Well now there's a move afoot to bypass the online portals with the objective being to commoditize the delivery of pricing information for the benefit of individual travelers. New software tools are available to ease the pain of checking prices for plane tickets, hotel stays and car rentals.
The newswires have been active relative to this issue lately:
AOL Offers New Travel Service
TravelAxe Provides New Travel Tools Geared for the Individual Traveler
While AOL has yet to establish some method of making money from the service, time and business volume will obviously tell.
TravelAxe, on the other hand provides a Windows-based programm to help people gather the information and tabulate it in a safe, familiar environment. The program is intuitive, easy to install and trouble free for me, up to this point. They have apparently established agreements with the major portals with regard to commissions for them which makes their product available free of charge as well as being free of usage fees to the end user.
The industry is discovering that the internet travel sector, while being the second most lucrative internet market vertical aside from online pornograrphy, is an elusive prey with many twists to anticipate before its ultimate capture.
Sunday, March 20, 2005
A Shameless Endorsement...
These guys have some great technology and I'm glad to be on their team. Starband makes it possible for remote RV resorts to have high speed internet services via satellite.
In addition, resorts can enhance their revenue by endorsing the Starband service to individual clients who can also get access by acquiring the necessary equipment to make their "mobile accommodations" satellite friendly. The resort recieves a share of the monthly fees paid by the user for a period of time. The Starband system can be integrated into any Wi-Fi network services provided by the resort thereby enhancing the value of a stay by providing higher speed internet access to clients, for a fee.
Take a look: Starband.com
Call 1-800-4STARBAND Mention this Code: #100170390 to the StarBand sales representative and be entered to Win a special Caribbean vacation to the Island of Barbados. Hurry the Draw is on May 31st 2005. All entries must be in by May 10th.
In addition, resorts can enhance their revenue by endorsing the Starband service to individual clients who can also get access by acquiring the necessary equipment to make their "mobile accommodations" satellite friendly. The resort recieves a share of the monthly fees paid by the user for a period of time. The Starband system can be integrated into any Wi-Fi network services provided by the resort thereby enhancing the value of a stay by providing higher speed internet access to clients, for a fee.
Take a look: Starband.com
Call 1-800-4STARBAND Mention this Code: #100170390 to the StarBand sales representative and be entered to Win a special Caribbean vacation to the Island of Barbados. Hurry the Draw is on May 31st 2005. All entries must be in by May 10th.
Thursday, March 10, 2005
When's the Moment???
I came across this article a while back. The question is one of, "when is the actual price for a ticket decided?" ...and how certain travel sites respond to that question differently.
(Have a read: Major Travel Sites Face Credibility Crunch | An Examination of Booking First-Class Tickets Online)
Now... I know we're beefing about pricing practices for some pretty pricey stuff to start with. First Class is worth it to some. But the practice of altering the price of a ticket or service while purchasing it online represents a failure to perceive accurately that the price must be established at presentation of the goods for sale.
When a client makes a decision to purchase anything online, there is a moment when they set those items "on the counter". Online service providers are then responsible to maintain the price quoted for the client until receipt or rejection of their payment.
(Have a read: Major Travel Sites Face Credibility Crunch | An Examination of Booking First-Class Tickets Online)
Now... I know we're beefing about pricing practices for some pretty pricey stuff to start with. First Class is worth it to some. But the practice of altering the price of a ticket or service while purchasing it online represents a failure to perceive accurately that the price must be established at presentation of the goods for sale.
When a client makes a decision to purchase anything online, there is a moment when they set those items "on the counter". Online service providers are then responsible to maintain the price quoted for the client until receipt or rejection of their payment.
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