Distribution: Difference between revisions
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== Which distribution channels? == | == Which distribution channels? == | ||
At the moment, the hotel mainly relies on its own sales, in their distribution (so getting customers and occupancy in the hotel) . So, in the [[Operating review|variable costs]] you will see no costs for this at all. <br> | |||
This situation doesn't really match reality anymore. Looking at the market as a benchmark, it would be more realistic to have: | This situation doesn't really match reality anymore. Looking at the market as a benchmark, it would be more realistic to have: | ||
* 30% directly from the own reservation system (CRS), royal customers, website etc. | * 30% directly from the own reservation system (CRS), royal customers, website etc. | ||
* 20% via agents (OTA, travel companies, partners etc), who would get 10% commission on an average: mega partners like [https://www.expedia.com/ Expedia.com] | * 20% via agents (OTA, travel companies, partners etc), who would get 10% commission on an average: mega partners like [https://www.expedia.com/ Expedia.com] | ||
* 30% via [[aggregator|aggregators]] like Bookings.com, or who would get [https://www.quora.com/How-much-commission-is-booking-com-charging-their-partner-hotels 10% commission on an average] in many cases more | * 30% via [[aggregator|aggregators]] like Bookings.com, or who would get [https://www.quora.com/How-much-commission-is-booking-com-charging-their-partner-hotels 10% commission on an average] in many cases more | ||
* 15% via [[affiliate]] links, who you would pay (cost per sale) [https://blog.travelpayouts.com/en/selecting-hotel-affiliate-program/ commission would be like 5% on an average] | * 15% via [[affiliate]] links, who you would pay (cost per sale) [https://blog.travelpayouts.com/en/selecting-hotel-affiliate-program/ commission would be like 5% on an average] | ||
* 5% via Daydeal sites like Groupon | * 5% via Daydeal sites like Groupon | ||
Some alternative for Bookings groups, being the biggest payer, are sites like [https://alternative.me/booking-com Hotels.com and others]. <br> | Some alternative for Bookings groups, being the biggest payer, are sites like [https://alternative.me/booking-com Hotels.com], and [https://alternativeto.net/software/booking-com/ others].<br> | ||
There is initiatives, like [https://moonback.com/ Moonback] setting up a more 'fair' system, starting from a steward-ownerships structure. <br> | There is initiatives, like [https://moonback.com/ Moonback] setting up a more 'fair' system, starting from a steward-ownerships structure. <br> | ||
Interesting read on Hospitality net is [https://www.hospitalitynet.org/file/152008406.pdf The economic impact of OTAs in the EU: summary report.]<br> | Interesting read on Hospitality net is [https://www.hospitalitynet.org/file/152008406.pdf The economic impact of OTAs in the EU: summary report.]<br> | ||
So looking ahead at the future, using these partners would also mean having the prices go up a bit, to compensate for the commissions to be paid. Or, having a higher [[occupancy rate]] to compensate for the additional costs. | So looking ahead at the future, using these partners would also mean having the prices go up a bit, to compensate for the commissions (costs) to be paid. Or, having a higher [[occupancy rate]] to compensate for the additional costs. | ||
== Models in operating a hotel == | == Models in operating a hotel == | ||
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<br><hr> | <br><hr> | ||
''→ GO! [[#top|Top of this page]]'' | ''→ GO! [[#top|Top of this page]]'' | ||
<center><small>''Emerald Forest Hotel'' | <center><small>''Emerald Forest Hotel'' offer an <font color="green">'''emerald''' </font color="green">hotel experience! | ||
| Run your own hotel in this management simulation.</small></center> | | Run your own hotel in this management simulation.</small></center> |
Revision as of 11:21, 2 July 2023
Which distribution channels?
At the moment, the hotel mainly relies on its own sales, in their distribution (so getting customers and occupancy in the hotel) . So, in the variable costs you will see no costs for this at all.
This situation doesn't really match reality anymore. Looking at the market as a benchmark, it would be more realistic to have:
- 30% directly from the own reservation system (CRS), royal customers, website etc.
- 20% via agents (OTA, travel companies, partners etc), who would get 10% commission on an average: mega partners like Expedia.com
- 30% via aggregators like Bookings.com, or who would get 10% commission on an average in many cases more
- 15% via affiliate links, who you would pay (cost per sale) commission would be like 5% on an average
- 5% via Daydeal sites like Groupon
Some alternative for Bookings groups, being the biggest payer, are sites like Hotels.com, and others.
There is initiatives, like Moonback setting up a more 'fair' system, starting from a steward-ownerships structure.
Interesting read on Hospitality net is The economic impact of OTAs in the EU: summary report.
So looking ahead at the future, using these partners would also mean having the prices go up a bit, to compensate for the commissions (costs) to be paid. Or, having a higher occupancy rate to compensate for the additional costs.
Models in operating a hotel
Read the interesting article on profit-models, ownership and distribution White paper in Hospitality Management,
→ GO! Top of this page