As the distribution sector continues to grow, the hotel managers have task to monitor the latest and best channel to apply for the hotel business. So, hơ many common channels are there? How do they work?
ezCms would like to introduce common room sale channels:
Offline client source (offline client)
1. TA/TO (Travel Agency/Travel Operation)
It is the most important and basic distribution channel for hotels. Some hotels have tourists from tourist companies, which accounts for more than 50% occupancy. The reason is that the tourists usually book through the travel agency because they have a good relationship with the hotels and become a hotel agent. So the offered hotel room price is the best price.
The tour companies have company tour, and if hotel offers the best hotel room price, of course, all in that tour will stay at the hotel that the company has signed contract.
The second source is from the trade companies, an important source accounting for large numbers. What the hotel need to do is contracting with companies, offering the best price and taking care of their customers during their stay at the hotel.
MICE stands for: MEETING, INCENTIVE, CONVENTIONS, and EXHIBITION. This type of travel is greatly promoted by many countries, because the value of this type of service is much greater than individual tourist or group travel.
As we all know, MICE is not the new tourist type, it has developed through several stages, depending on different perceptions. Today, MICE is considered the collective tourism product consisting of individual tourism products and the organization and infrastructure. MICE market is appreciated the largest revenue generating for the country’s tourism industry due to numerous, focused and high spending customers. Compared to individual travelers, or group travelers, the MICE tourists are considered luxurious customers, mostly businessmen, politicians,… who are willing to spend to enjoy high service and products.
Other source is from government agencies such as state agencies, foreign ministries, ministry of public security, Department of Defense, Department of health, the ministry of interior.
5. Non- government
Tourists are from non-government organizations such as Television, Voice, Academy of Sciences , ..
Another source is hotelier, hotel staffs from different hotels in different areas, who need to travel and hotel reservations or in case the guest staying their hotel needs to book in another hotel for their further trip. So, the hotels need provide rates together to cooperate and mutual exchange of tourists.
The origin of this word is Ambassy in French language, which means ambassador’s office. The ambassador is the highest diplomatic representative, who is the spokesperson for the national government. Embassy also does administrative tasks, like consulate, but also represents foreign governments. Therefore the moving, staying hotel are necessary.
Customer who arrives at the hotel and doesn’t make advanced reservations is called walk-ins. This is the source which hotel may sell the highest price and apply upselling. However, this type of tourists is the last source of hotel because hotel can not estimate in the business plan.
Source guests online (online channel)
Today the internet is becoming increasingly popular and important, according to the latest figures from travelthink, a project of google for the tourism industry, the internet today is the most important resource in planning tourism accounting for more than 85%. The distribution channels on the internet contain 3 main areas:
OTA Online Travel Agency is becoming increasingly important and popular, most of the hotels today are present on onine sales channels such as Agoda, Expedia, booking.com, iVIVU … The travelers today make hotel reservations through the channel because of the fastness, convenience, good value and full information.
2) GDS (Global Distribution System)
Global distribution system is the mode of B2B selling rooms (business to business) which hotel signs contract with online distribution companies. And the company’s systems have hundreds, thousands of other travel companies to get information from the system and sell rooms for their tourists.
Hotels sign contract with the airline and the airline put the name of the hotel into booking sites. Guests can book airline tickets and book room hotels in the list.
Tourists access the hotel website and book reservations. So, the present of the hotel on the internet is extremely important for hotels to sell their rooms directly to the traveler without a third party’s , meaning that the hotel do not have to split the commission for 3rd party.