Effective GDS use maximizes revenue - Hotel & Motel Management
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Effective GDS use maximizes revenue


H&MM Marketing Report

The effective use of Global Distribution Systems is crucial to the maximization of room revenue at virtually all hotels, both independent and branded. The GDS is the worldwide electronic pathway to a significant segment of high value reservations that are made by travel professionals directly for clients. The GDSes serve as an extension of your reservation and sales team by presenting your hotel 24 hours a day, seven days a week on a global basis. This significant source of business is evolving with technology and business model changes, and it is vitally important for hoteliers and brand managers to adapt and implement strategies and tactics for effectiveness.

Here are suggestions to help hoteliers maximize revenue through this important channel.

Inform them

Thorough information on your hotel, from amenities to nearby attractions and businesses to facility upgrades, should be loaded into the GDSes. Travel professionals should be provided as much current data as possible about your property. This will increase their effectiveness when booking guests’ stays. Make sure your rates are loaded correctly in all systems, including locally and nationally negotiated preferred rates. If the GDSes or your brand’s central-reservation system cannot see all appropriate rates, they might not be sellable via the system’s voice, Internet and third-party channels.

You especially want to provide information on special rates, packages and brand-wide promotions in which you are participating. Help the travel agents sell. Information on the GDS is provided in English, but make sure your data is written without colloquialisms and in a style that is understandable to travel agents worldwide. Also, because third-party intermediaries such as Travelocity also often obtain their information from the four GDSes (Amadeus, Galileo, Sabre and WorldSpan), it is even more important that complete data on your hotel be presented. Take action by shopping your listings on the GDS and the Internet; don’t assume that updates have occurred and that pricing is properly displayed.

Keep it fresh and sell visually

Update your content regularly. Highlight property improvements, new features, area attractions, government agencies, companies and other demand generators. Visual tools—photos, virtual tours and videos—are essential to selling today, and many hotels have not focused effectively on this. The GDSes are building the capability to present visual content and are moving toward Web-based operating systems. This is an emerging trend in the world of hotel bookings, and you want to take advantage of this opportunity. Ensure that you have current, professional and high-quality photographs of your guestrooms, meeting space, restaurants and amenities.

Utilize your franchisor and brand resources

Take advantage of your franchisor’s expertise in distribution. You are paying for their knowledge, advice and training—take advantage of this valuable resource. Ask them to evaluate your GDS positioning and respond to your franchisor’s suggestions. For voice reservations, consider using the services provided by your chain to manage calls to your property. Also, promote your chain’s toll-free reservations number and Web site. These are your lowest-cost—and often highest-rated—sources of business, and you want to make sure your guests are aware of them.

Use preferred positioning on the GDS

Another emerging trend in the GDS world is the ability to purchase preferred positioning for your hotel. For a certain financial commitment, the GDS will make sure your hotel is presented with preference to travel agents. You must perform your own cost-benefit analysis, but this can be very effective. Ask your franchisor or GDS representative which programs are available that would suit your hotel’s needs.

Utilize performance data

Performance data tools offered for sale by the GDSes and companies such as TravelClick permit individual hoteliers to discern the flow of GDS business in their markets. This valuable information can show you GDS booking patterns by travel agents within your market. This is an excellent way to determine whether you are receiving your fair share of business in your area. With good analysis of the data, you can determine the success of your direct sales effort to key accounts. Based on your relative positioning, you can adjust your rates and/or promotions accordingly. If you are underperforming in the GDSes or with certain agencies, you can take strategic and tactical steps to improve. While these monthly reports can be costly, they can be a positive investment.

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