Van Der Valk Hotels. Understanding the GDS. Sue Ross & Martijn Langstraat 2/21/2017

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1 Van Der Valk Hotels Understanding the GDS Sue Ross & Martijn Langstraat 2/21/

2 We are a trusted partner of hotels across the globe since Offices across the globe More than years of experience & 30innovation Serving over 38,000 hotels globally Operating in Over 176 countries across the globe 35 languages spoken 1,000+ employees across the globe 2 2

3 GDS Understanding this channel 33 3

4 The audience is different: Travel agents Longer term strategy 44 4

5 GDS: The Basics Global Distribution System for travel agents to book airline tickets, hotel rooms, rental cars, tour packages USA/Canada Central & South America USA, United Kingdom, India & the Far East East USA, Israel France, Germany, Spain, Scandinavia 5 5

6 GDS Historical Year over Year Performance HOTEL BOOKINGS (IN MILLIONS) up to 2016 Q3EST 2016 has paced to be another record year, final results will be available in February Source: TravelClick Agency Q3. 6 6

7 HOD Rooms Rates Others Property type and description Room Descriptions Rate description Guarantee Policies Location Rate Strategy Policies Link Rates Attractions and Corporate Locations Room Sort Order Rates Sort Order Cancellation Policies 7 7

8 HOD The HOD hotel description is the marketing text for the guest and Travel Agent and has the following sections: Property type and description Location Policies Attraction and Corporate Locations Include: transport tourist attractions convention centers and hospitals. Include all companies: in proximity to your hotel. primary key accounts already staying at your hotel. targeted key accounts currently booking comp set hotels Photos are they the most up to date? 8 8

9 9 9

10 Room Descriptions Room descriptions must be clear and meaningful. Clients are looking for space, tranquility and comfort. ROOM TYPE + TYPE OF BED + SIZE (if this is an advantage) + SPECIAL FEATURES (views, internet connection, TV, etc). Do Not be afraid to use abbreviations KG for King Bed, BKST for Breakfast, All rooms must be available with all rates. This way, travel agent can make upsell. Do tailor room descriptions to your target market. For example, more business type rooms may highlight HighSpeed Internet and workdesk, while leisure room types may highlight room views, fridge and microwave, or DVD players. Create maximum 6 room categories Use the two lines of text to add in value add inclusions to sell your room Example: 10 10

11 Recommendations Improve GDS room description according: ROOM TYPE + TYPE OF BED + SIZE (if this is an advantage = Balcony) + SPECIAL FEATURES (air condition, mini bar, SAT TV, shower and hair dryer). Use both lines if is necessary. WEB BOOKING ENGINE: You have more characters to adjust the description for website and mobile versions 11 11

12 Rate names Have two parts the Rate Plan Name, and a two-line GDS rate plan description and are updated in ihotelier through the Rate Plan Setup. The ONLY info displayed in GDS is the Rate Plan Name in the first part of the booking screen. Further rate plan details are available to the agent on a second screen. Rate Plan Name Rate Plan Name Description Lines 1 & 2 For GDS, all text should be in capital letters. Keep the rate names clear and meaningful. For public rates, keep the names simple: Best Available Rate, Bed & Breakfast Rate. For neg/corporate: use simply the name of the company, Consortia etc. for example, SIEMENS, BAYER, SBERBANK.COM 12 12

13 Rate description Include information about what is included on the rate: Breakfast, taxes, free access to gym, free internet, free parking, etc. Do not specify what it s NOT included. Do not Include information about commissions on any rates. Final guests now have access via online booking tools to book themselves so no mention of commission in the descriptions. Don t be afraid to use abbreviations: PCT (per cent), TAX, INCL, BKFAST, etc. Please bear in mind that GDS does not read symbols like %, comas etc. Examples: 13 13

14 What if the rate description is blank? If you leave the GDS room description in ihotelier blank the agent will not be able to see any information on their GDS screen and not know why they should book that room. Room Description Line

15 Rate description examples Current auto system upload: Recommend for Consortia rate plans: Public rate example: Recommended: 15 15

16 For Commissionable Rates it is very important that you mark this in ihotelier If this box is left unchecked the rate will not be commissionable If marked like this the agent will see that the commission is 10% of the rate value If marked like this the agent will see that the commission is a flat

17 Rate Commission is the amount that you will pay the travel agent if they book the rate. Examples of commission information as displayed on the GDS screens Rate Commission Information Rate Commission Information 17 17

18 Recommendations Revise commissions are 1. marked as commissionable 2. with % amount input Revise rate names to be clear & meaningful Revise all WEB rates descriptions. This is how it will appear in your booking engine and mobile versions. Revise all GDS rates descriptions, deleting commission amount and adding all inclusions

19 Recommendations Revise all consortia rates descriptions, completing descriptions with what is included in the rate 10 PCT OFF BAR, FREE PARKING, 10% COMM etc

20 GDS: Segments & Strategies Have a clear business mix: Public + Corporate + Consortia Strategies by segment Corporate - Identify opportunities of corporate accounts booking into the comp set at higher ADRs (Agency 360) - Target new local corporate accounts - Ensure exposure and awareness of existing corporate accounts - Monitor performance of corporate accounts Consortia - Identify top rating Consortia business through Agency360 (destination / agency) and develop strategy for acquisition - Not A360 use imanager to pull GDS production by travel agent. - Identify all consortia check in guests and offer them some business facilities. - Ensure exposure and awareness of hotels to top agencies by agency targeting, visits, FAM trips and advertising activities - Target individual agencies with potential through Consortia AM (corporate team) - Revise consortia policy & best practises - Preferred Placement Non negotiated - PCC targeted GDS media targeting higher ADR - Identify growth opportunities of agencies booking non negotiated rate types - Target individual agencies through Corporate team or directly 20 20

21 What agents are telling us 21 21

22 Importance of GDS Offering Rate Parity Travel agents across the globe were virtually unanimous in their belief that GDS systems should offer rate parity. Very Somewhat 81% 85% 79% 80% 96% 98% 96% 94% Not Very/Not at All 15% 13% 17% 15% 4% 2% 4% 6% Total Agents Americas EMEA Asia/Pacific Q. How important is it to you to know that the GDS can offer rate parity (Very important, somewhat important, not very important, not at all important)? 22 22

23 Actively Booking Away from Hotel Property Not Offering Full GDS Parity Across the globe, more than half of travel agents actively book away from hotel properties that do not offer full GDS rate parity. Agents in the Americas are significantly less likely to book away from hotel properties that do not offer full GDS rate parity than agents in the EMEA and ASIA/Pacific. 56% 50% 58% 61% Yes No 44% 50% 42% 39% Q. When a hotel property does not offer full GDS rate parity, do you actively book away from that hotel property? Total Agents Americas EMEA Asia/Pacific 23 23

24 Summary / Key Takeaways Travel agents actively book away from hotels not offering rate parity Agents routinely compare negotiated pricing to BAR and offer clients the best available rate Value added inclusions are important and drive conversion Travel agent distribution success is a long term strategy; and not a short term tactic 27 27

25 Actions Update HOD pages and add onto it INDEXES for your hotel Revise and update GDS photography Review room and rate offerings on the GDS wording and pricing 28 28

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