Why shoudl rates come from the PMS?

Why is it important that online rates and availability come from the PMS? : 

Why is it important that online rates and availability come from the PMS? By Erik Weller

What are online rates? : 

What are online rates?

Some examples: : 

Some examples:

Some expamples: : 

Some expamples:

Some expamples: : 

Some expamples:

Some expamples: : 

Some expamples:

Some expamples: : 

Some expamples:

Some expamples: : 

Some expamples:

Some expamples: : 

Some expamples:

Slide 11: 

So Online Rates are rates found on various websites.

But these are also online rates: : 

But these are also online rates:

Slide 13: 

Rates on the site of the Best Western Hotel Group

Slide 14: 

And these rates on the site of the Ghent River Hotel

But there are more rates that are published. Perhaps not online, but they are worth mentioning here: : 

But there are more rates that are published. Perhaps not online, but they are worth mentioning here: So, rates on the branded website are online rates too.

Global Distribution Systems : 

Global Distribution Systems Rates on the GDS

The Global Distribution Systems (GDS) are the systems travel agents use to book flights, rental cars and hotel nights. : 

The Global Distribution Systems (GDS) are the systems travel agents use to book flights, rental cars and hotel nights.

So, did we answer the question, what are online rates? : 

So, did we answer the question, what are online rates? Yes. In this presentation online rates are rates that are published electronically. On various travel websites On the branded website On the GDS

We did not yet answer the question “Why is it important that online rates and availability come from the PMS?” : 

We did not yet answer the question “Why is it important that online rates and availability come from the PMS?”

To solve the problems : 

To solve the problems OK – the answer is:

Which begs the question:What are the problems? : 

Which begs the question:What are the problems?

Well, do you recognize this: : 

Well, do you recognize this: All these sites, including the ADS and the providers of the booking engine, want the hotel to log on to their extranet. And they all look different.

Problem 1: Many logins and passwords : 

Problem 1: Many logins and passwords Problem 2: Many different user interfaces

Slide 24: 

OK, next problem: This is a sample of how reservations are received by the hotels. (click to zoom in)

Slide 25: 

Quite complicated and of course, they all send different e-mails (or faxes)

Problem 1: Many logins and passwords : 

Problem 3: Reservations are received as coded messages by e-mail and fax Problem 1: Many logins and passwords Problem 2: Many different user interfaces

Slide 27: 

Imagine you have a hotel with 50 rooms Imagine you use 10 channels Now imagine you have 5 rooms left OK, next problem:

Slide 28: 

How do you offer those 5 rooms on the 10 channels?

Slide 29: 

Offer all 5 rooms on all 10 channels? Too risky Channel 1: 5 roomsChannel 2: 5 rooms Channel 3: 5 rooms Channel 4: 5 rooms Channel 5: 5 rooms Channel 6: 5 rooms Channel 7: 5 rooms Channel 8: 5 rooms Channel 9: 5 rooms Channel 10: 5 rooms If all 5 rooms get booked on all sites, you are overbooked by 40 rooms!

Slide 30: 

Offer 1 rooms on each of the 10 channels? Too Cautious Someone looking for 2 rooms will not find your hotel, even though you have 5 rooms left! Channel 1: 1 roomChannel 2: 1 room Channel 3: 1 room Channel 4: 1 room Channel 5: 1 room Channel 6: 1 room Channel 7: 1 room Channel 8: 1 room Channel 9: 1 room Channel 10: 1 room

This problem cannot be resolved! : 

This problem cannot be resolved! Or at least, not manually. 10 x 5 = 50 10 x 1 = 10 1+1+1+1+1+1+1+1+1+1? 0+2+1+1+1+1+1+1+1+0? 0+0+0+0+0+1+1+1+1+1? 3+1+0+0+0+1+0+0+0+1? 2+1+1+0+0+0+0+0+0+1? 3+1+1+0+0+0+0+0+0+0? 4+1+0+0+0+0+0+0+0+0? 5+0+0+0+0+0+0+0+0+0? 0+1+1+2+1+0+0+0+0+0? 2+2+2+2+2+2+2+2+2+2? 3+1+1+0+0+0+0+0+0+3? 3+1+1+0+1+2+4+1+2+1?

Problem 1: Many logins and passwords : 

Problem 4: Effective yield management is impossible Problem 3: Reservations are received as coded messages by e-mail and fax Problem 1: Many logins and passwords Problem 2: Many different user interfaces

Slide 33: 

What happens in reality? Some of the rooms are offered on some of the channels and the hotel is unavailable on the other channels. Which is just like having a store window with nothing on display!

An example: : 

An example: This hotel is available on Booking.com for September 25th

Slide 35: 

But the same hotel is unavailable for September 25th on HotelClub. And at the bottom of the page it even tells the guest to scroll down to find other hotels.

Problem 1: Many logins and passwordsProblem 2: Many different user interfacesProblem 3: Reservations are received as coded messages by e-mail and faxProblem 4: Effective yield management is impossible : 

Problem 1: Many logins and passwordsProblem 2: Many different user interfacesProblem 3: Reservations are received as coded messages by e-mail and faxProblem 4: Effective yield management is impossible Problem 5: Decreased exposure

Slide 37: 

And there is another problem:

Slide 38: 

This is the hotel’s own website. It shows a rate of EURO 185 for the night of September 25th.

Slide 39: 

This is the same hotel on a different site showing a rate of EURO 206 for the night of September 25th.

Slide 40: 

The hotel shows up at booking.com for EURO 159. By having different rates on various sites, the guest is rewarded by shopping around and will in the end decide to book on Booking.com in stead of on the hotel’s own website. The hotel is punished by having to pay commission.

Slide 41: 

Problem 6: Rate parity is hard to attain Problem 1: Many logins and passwordsProblem 2: Many different user interfacesProblem 3: Reservations are received as coded messages by e-mail and faxProblem 4: Effective yield management is impossible Problem 5: Decreased exposure

Slide 42: 

OK – enough problems already! Are there any solutions?

Slide 43: 

Sure!

Slide 44: 

Channel Managers

Slide 45: 

Channel Management software can resolve some of the issues, but without a connection with the PMS they cannot resolve all issues.

Slide 46: 

Problem 1: Many logins and passwordsProblem 2: Many different user interfacesProblem 3: Reservations are received as coded messages by e-mail and faxProblem 4: Effective yield management is impossible Problem 5: Decreased exposure Problem 6: Rate parity is hard to attain Channel Management software without a PMS connection resolves only some of the issues: X X X X

Slide 47: 

Effective Yield Management This problem cannot be resolved! Or at least not manually. I’d just like to go back to a point we saw earlier: Remember? 10 x 5 = 50 10 x 1 = 10 1+1+1+1+1+1+1+1+1+1? 0+2+1+1+1+1+1+1+1+0? 0+0+0+0+0+1+1+1+1+1? 3+1+0+0+0+1+0+0+0+1? 2+1+1+0+0+0+0+0+0+1? 3+1+1+0+0+0+0+0+0+0? 4+1+0+0+0+0+0+0+0+0? 5+0+0+0+0+0+0+0+0+0? 0+1+1+2+1+0+0+0+0+0? 2+2+2+2+2+2+2+2+2+2? 3+1+1+0+0+0+0+0+0+3? 3+1+1+0+1+2+4+1+2+1?

Slide 48: 

So let’s look at this in moredetail. First, let’s defineYield Management. PMS Yield management is the process of understanding, anticipating and influencing consumer behavior in order to maximize revenue from a fixed, perishable resource such as hotel rooms. To be able to influence customer behavior, customers need to know what is available.

Slide 49: 

Let’s take for example a hotel with 10 rooms available and no connection with the Channel Management software. PMS Channel Manager 10 rooms

Slide 50: 

The Channel Management software distributes the 10 rooms to the Booking sites. The 10 rooms are manually input in the Channel Management software. PMS Channel Manager 10 rooms 10 rooms 10

Slide 51: 

Then a reservations is made on one of the sites. And the reservation is sent to the hotel by e-mail or fax. PMS Channel Manager 10 rooms 10 rooms Reservation 9 rooms And the number of available rooms is lowered to 9.

Slide 52: 

Without a connection between the PMS and the Channel Management software the Channel Management software is unaware of the new situation. 9 rooms PMS Channel Manager 10 rooms

Slide 53: 

OK – granted, the better Channel Managers have two-way interfaces and would know about the reservation made on the booking site. 9 rooms PMS Channel Manager 10 rooms 9 rooms In that case, the Channel Manager will know about the new situation:

Slide 54: 

Then the only way the Channel Manager knows this is if someone logs in and updates the allotment. 9 rooms 8 rooms PMS Channel Manager 9 rooms But what if a reservation is taken at the hotel, by phone?

Slide 55: 

Effective Yield Management PMS To be able to perform effective Yield Management you must have Single image inventory Single image inventory means that all availability is taken from the same container. And that container can only be the PMS.

Slide 56: 

So for effective yield management, all rates and availability needs to come from the PMS. Effective Yield Management PMS

Slide 57: 

Problem 1: Many logins and passwordsProblem 2: Many different user interfacesProblem 3: Reservations are received as coded messages by e-mail and faxProblem 4: Effective yield management is impossible Problem 5: Decreased exposure Problem 6: Rate parity is hard to attain Channel Management from the PMS resolves all problems:

Slide 58: 

Rates and availability from straight from the PMS. PMS If your PMS has a connection with RezExchange, we can help you distribute your inventory to the channels with which you work.

Slide 59: 

Thank you Erik Weller erik.weller@rezexchange.com