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Balboa Travel & Trip. Bam
Trip. Bam Why Trip. Bam? Technical Implementation Considerations Product Overview Suggestions
Opportunity Today at most TMCs, client hotel costs are increasing, commission revenues are flat or declining, and open or direct bookings are increasing. Trip. Bam may: lower client hotel costs by as much as $60 per night through daily rate shopping. Fight lack of content perception. increase agency revenues through fees and increased commissions reduce “open” bookings by converting to TMC bookings (attachment) 3
Step One: Like-For-Like (Agency Notification) Savings found 5% of the time, average savings of $30 per night. 4
Step Two: Same Hotel Only (Room Type Changes) Savings found 15% of the time at the booked hotel, average savings of $40/ Nt 5
Step Three: Selective Clusters (Savings + Compliance + Commission) Preferred Cluster Non-Preferred Savings found 40% of the time, average savings of $50 per night. Lower client costs and increased commissions.
Step Four: Larger Clusters (Maximum Savings) . Cluster Savings found 50% of the time, average savings of $60 per night. 7
The Money Matters Hotel Booking - 2 Night Stay = $200 Commission= $40. 00 New Booking = $150. 00 Commission = $30. 00 Commission Loss = ($10. 00) Percentage of non-commissionable hotels? Percentage of commissionable hotels? Meeting and VIP exclusions? Incremental commission on net conversions= ? What do you need to charge? Hotel inventory is dynamic like airline inventory. It changes by the second and has to be monitored and worked quickly for best results. Client – negotiated national hotel contracts are typically a % off BAR.
Major Items to Consider Support, 24/7? Operational Structure – Agent or Team Messy GDS Data – Messy On-line Tool Handling Percentage of Nego. Hotels – Pegasus, Squatters Meetings/Groups VIPS - Exclusions Reporting – Trip. Bam or In House Communication – Travel/Admin/Finance Strategy Solutions – Who will sell it and how? Client Relationship Commission Gain & Loss Pricing & Implementation
Programming Challenges Rate Changes During Stay Currency Conversion Total Rate: $716. 88 Base Rate Average: $309. 00 Taxes: $98. 88 Taxes and Fees/Calculating Total Inconsistent or missing GDS Information
Currency/GDS Challenges Total Stay Estimate: 2662000. 00 KRW Subtract Taxes 462000. 00 KRW Average Nightly Rate: 314285. 71 KRW= $288. 79 USD
Agency Process: Back Office Feed or API Like For Like GDS X 1 2
Corporate Client - Actual Results Received 714 bookings for a larger corporation. It was shopped for two weeks. Searched just the same hotel, clusters of just preferred hotels only, and clusters for both preferred hotels and preferred brands.
Best Practices Policy § $25. 00 minimum savings to make offer, same hotel or cluster § Auto – Accept same hotel room type changes § Well-defined client policy & implementation process § Hotel rate change the most a few days before arrival § 2 mile minimum unless compact area like Manhattan § Preferred to Preferred if company has over 50 preferred hotels in program § Direct client offers § Similar star rating § Make sure to provide realized savings reports § Many offers will be declined due to traveler preference, bedding type, room amenity and simply ignoring the offers § Consider “open-booking” solutions to complete hotel controls Cluster Size Reporting Get Paid YOU must charge!
Questions? Contact Steve Reynolds STEVE. [email protected] COM 214 -363 -9630