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“Making the most of IDS as part of your Revenue Management strategy” SMILE Conference May 2008 eRevMax Inc, Sascha Hausmann, COO. “Making the most of IDS as part of your Revenue Management strategy”. Where when and why do you book your travel and how do you do it?

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“Making the most of IDS as part of your Revenue Management strategy”SMILE Conference May 2008eRevMax Inc,Sascha Hausmann, COO


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“Making the most of IDS as part of your Revenue Management strategy”

  • Where when and why do you book your travel and how do you do it?

  • How Internet Distribution Systems impact the way hotels need to view revenue management

  • “To position or not to position…” - Parity versus maximizing opportunities at producing IDS

  • Recent booking trends and the impact on revenue management  

  • Summary: Right Time, Right Place, Right Price. Revenue Management in a world wide web.

  • Rate Tiger Product Suite


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eRevMax Inc. / Rate Tiger - Key Facts strategy”

WHO ARE WE ?

  • RATE TIGER – We build software for hotels (since 2002) that

    • Simplifies competitor analysis

    • Centrally manages rates and availability

    • Automates revenue management

  • Products for Hotels, Hotel-Groups / Chains, Hostels and Distribution Channels


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Where strategy” when and why do you book your travel and how do you do it?

Where:

44% of the UK population bought online in 2007 (BBC)

53% of all travel in the US was bought online in 2007 (Phocus Wright)

35% of all travel in Europe was bought online in 2007 (Phocus Wright)

Best deals on the internet overall amongst all offered products on the web:

  • Travel (hotels & flights)

  • Consumers have high expectations


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Where strategy”when and why do you book your travel and how do you do it?

When:

  • Internet: 24/7

  • Travel agent: During business hours


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Where when and strategy”why do you book your travel and how do you do it?

Why:

  • Price: PERCEPTION: cheaper on the Web

  • 24/7: much easier you can book when it’s convenient

  • Benchmarking: Compare different hotels

  • Wide choice: a wide range of shops and products

  • Quick: book within a few minutes (really ?)


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“How Internet Distribution Systems impact the way hotels need to view revenue management”

What is Revenue Management ?

“ … Revenue Management is the process of understanding, anticipating and reacting to consumer behaviour in order to maximize revenue or profits… “ (Wikipedia, April 2008)

and not the art of being the cheapest!


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“How Internet Distribution Systems impact the way hotels need to view revenue management”

Whatinfluences consumer behaviour ?

  • Product In hoteliers’ control

  • Location A set parameter

  • Price In hoteliers’ control

  • Availability Driven by the market and the hotelier

  • Convenience In hoteliers’ control

  • Impression In hoteliers’ control

    Conclusion: 5 out of 6 can be influenced by the hotel


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“How Internet Distribution Systems impact the way hotels need to view Revenue Management”

Today, the consumer decides differently …

  • Internet bookings: 2000: 3-5% 2007: 50% (US) / 35% (EU)

(Wikipedia)



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“To position or not to position…” - Parity versus need to view Revenue Management”maximizing opportunities at producing IDS

Hotels have the choice now...

1. Different rates at different sites

2. Keep your rate parity at all sites


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“To position or not to position…” - Parity versus maximizing opportunities at producing IDS



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Summary: Right time, right place, right price. Revenue Management in a world wide web.

Right Time – Consider:

  • Market conditions (trade shows, events)

  • Level of occupancy

  • Consumer trends & behaviour

  • Competition


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Summary: Right time, right place, right price. Revenue Management in a world wide web.

Right Place – Research:

  • Global vs. national vs. regional extranet?

  • Offline vs. online?

  • Question: which extranets produce at the Right Time?


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Summary: Right time, right place, right price. Revenue Management in a world wide web.

Right Price – Manage:

  • Segmentation of client mix (corporate / leisure / weekday / weekend / etc.)

  • Balance between occupancy and rates

  • Competitiveness of rates

  • Consider consumer benchmarking abilities


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Where is my business coming from? Management in a world wide web.

Who are my competitors and how do I compare?

Which channels do I need to work with?

What should be my pricing strategy?

How or how often should I update my distribution channels?

How do I monitor results?

… Ask yourself…

Online

RTStrategy


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Market – Online Distribution Market Overview Management in a world wide web.

Channelsof Distribution

Demand

Segments

Airline CRS (GDS)

Switch

Hotel CRS

Hotels

TRADITIONAL

Pegasus

Chain CRS

Chain Franchises

Travel Website

Sabre

Who will help to manage this chaos ?

WorldSpan

RepresentationCompany

IndependentProperties

Travel Agents

CORPORATETRAVEL

Amadeus

RT Integration

Galileo

GROUP

CONVENTION

Event ManagementCompanies

Hotel/MotelGroups

I-CRS

RT Integration

IndependentHotels

Call Centers

LEISURE

TRAVEL

INTERNET BASED

Travel Websites

ResortsInns, B&B’s


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RateTiger Management in a world wide web. Product Suite

Helping hoteliers to better manage online revenue and distribution ...

RTStrategy

(coming soon)


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Products Management in a world wide web.

  • Benchmarking for Hotels / Groups / Travel sites

    • Competitor rate information on travel and hotel sites

    • Weekly report or online real time (both accessible at any time)

    • 300 websites connected / 3,000 hotel sites configured

    • Several packages available

RTStrategy


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Products Management in a world wide web.

  • Rate & Inventory Allocation

    • Manage multiple travel websites in one screen

    • Optional status quo (Pro version)

    • Currently over 250 sites

    • Several packages available

RTStrategy


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Products Management in a world wide web.

  • Combination of RTShopper and RTAllocator

    • From competitor analysis to rate update

    • Additional functions

    • Available in two versions

RTStrategy


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Products Management in a world wide web.

  • Low cost revenue management system

    • Based on how hotels determine rates

    • Three strategies

    • Lowest rate guarantee available for all strategies

    • Additional features

RTStrategy

RTStrategy (coming soon)


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Products Management in a world wide web.

RTStrategy

  • The Corporate products:

    • RTCorp: your single interface solution for managing a chain of hotels

    • RTWeb: your competitive intelligence report provider for travel websites

    • RTConnect: your global distribution management switch


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… OR very simple … Management in a world wide web.

WithoutRateTiger

WithRateTiger

Time consuming process?You can’t add more sites? Confused?

With RateTiger you willManage More by Managing Less


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Thank You Management in a world wide web.

UK Sales Office:

eRevMaxMonmouth House, 3rd Floor, 40 Artillery Lane

London E1 7LS, United Kingdom

Tel: +44 (0) 20 7422 7528

Fax: +44 (0) 20 7375 0341

E-mail: [email protected]

Web: www.ratetiger.com


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