23
1 Woods et al., Professional Front Office Management © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Distribution Channel Management
| Date post: | 13-Mar-2016 |
| Category: |
Documents |
| Upload: | cairo-goodwin |
| View: | 62 times |
| Download: | 0 times |
1Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
2Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Overview
• Intermediary: An entity authorized by a guest to make a hotel reservation on the guest’s behalf.
• Travel Agent: A hospitality professional that assists clients in planning travel.
3Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Overview
• History of distribution channels:–THISCO: Short for “The Hotel Industry Switch Company.”
4Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Overview
• Travel Wholesaler: An entity that purchases blocks of hotel rooms and, in turn, sells them to travel agents.
– Step 1: A hotel sells rooms to a travel wholesaler.
– Step 2: The travel wholesaler sells rooms to a travel agent.
– Step 3: The travel agent sells rooms to an individual guest (or group).
– Step 4: The guest or group stays at the hotel.
5Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Overview
• Fiduciary: A relationship based upon trust and the responsibility to act in the best interest of another when performing tasks.
6Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
• Walk-in • Telephone• Fax• E-mail/traditional mail• Hotel sales personnel• GDS• Chain or brand central reservation system
• Internet
7Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
• Net ADR Yield: The rate (ADR) actually received by a hotel after subtracting the cost of fees and assessments associated with a room sale.
Room Rate - Reservation - Generation Fees Room Rate Paid
8Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
• Walk-inSpecific steps to help maximize walk-in rate acceptance:
– An immediate welcome and friendly “acceptance”
– Attractive and clean lobby area – Special discounts for “last minute travelers”
– An upgraded room assignment from a standard to a higher-level room type
– Use of a logical fade rate
9Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
•TelephoneImportant areas for potential improvement:
– Telephone etiquette– Qualifying the guest– Describing the property– Presenting the rate– Overcoming price resistance– Up-selling– Closing the sale (making the reservation)– Re-capping the sale
10Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
• FaxTo maximize effectiveness:– Provide guests with a designated toll-free fax number
– Train reservation staff to respond to a reservation request immediately upon its receipt
– Consider purchasing software that allows the use of the hotel’s e-mail system to reply to reservation requests
– Keep adequate supplies on-hand – Use professional cover and content sheets
11Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
• E-mail/traditional mailTo maximize effectiveness:– Reply to all mail inquires within 24 hours– For e-mail – use the hotel’s name in the “response” message title line
– For traditional mail – use professionally printed stationary and prohibit use of photocopied “fill-in-the-blank” letter replies
– Use automated spell-check software– “Sign” all mail clearly
12Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
• Group sales department:Attrition: The difference between the original room request and the actual purchase of a group.
13Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
• Global Distribution System (GDS)To maximize effectiveness:– Monitor the number of reservations received from each GDS
– Establish a relationship with 1+ contacts from each GDS
– Establish a relationship with 1+ travel agents
– Consider travel agents as a unique and important “market”
– Consider joining and becoming active in the American Society of Travel Agents
14Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
• Central Reservation System (CRS) typically consists of:– Toll-free telephone call center– Chain operated website– E-mail/traditional mail reservations division
– Group sales division
15Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
• Central Reservation System (CRS)To maximize effectiveness:– Ensure that all hotel-related information supplied to the brand’s call center is accurate and current
– Conduct periodic shopper calls to the CRS– Consider an annual visit to the brand’s call center
– Ensure that all information listed on the website is accurate and up-to-date
– Supply attractive photos and creative site copy– Follow up promptly on any group business leads provided by the CRS
16Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
• InternetE-wholesaler: A room reseller that obtains reduced (wholesale) room prices and inventory commitments directly from a hotel or through an agreement with the hotel’s corporate brand managers. It then publishes “retail rates” on its websites, usually at a markup of 20% to 40%.
17Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
• InternetPrinciples to consider:– Ensure accuracy– Update regularly– Monitor placement– Manage search engines– Maintain rate integrity– Monitor results
18Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
• Internet property websites:Factors to consider:– Written content– Visual and audio content– Reservations device– Appropriate links
19Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
• Internet chain websites:Lowest Rate Guarantee: A program that assures travelers the lowest available rate for a specific room type on a specific date will be found on the franchisor’s website.
20Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
• Internet third-party websites:Merchant Model: An Internet sales method in which hotels sell or commit rooms to Internet site operators. These sites, in turn, allow consumers to enter requested location and arrival dates. The consumers are then presented with a choice of specific hotels and associated rates available for immediate purchase on the website.
21Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
• Internet third-party websites:Opaque Model: An Internet sales method in which consumers “bid” an amount they are willing to pay for a room on a specific arrival date, and the third-party website operator matches that bid with a hotel willing to sell a rooms at that rate.
22Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management
• InternetTo maximize effectiveness:
– Seek rate parity across all distribution channels
– Show the hotel on as many sites as is realistically profitable
– Keep all information current– Promote the use of lower-cost (higher net ADR yield) sites over higher-cost sites
– Use the information found on competitors’ websites to compare and evaluate the hotel’s own rate-management decisions
23Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management Challenges
• Inventory ownership• Website access control• Guest- and sales-related issues:– Rate consciousness– Group block management– Occupancy tax liability
