Articles for ‘distribution’

Shifting of Distribution Costs: from GDS fees to CPC

Mardi 1 mars 2011 by Julia

Internet is actually perceived as an economic and liberator distribution channel regarding to GDS. However, the cyclic effects of the travel industry are returning to the fore and the web is contributing to the installation of new monopoles. We are passing from a situation where GDS were the unique access point to offers to a situation where the web is becoming this new unique access point. Here is a short historical recap that would help you to better perceive the cyclic aspect and the stake of the current situation. The GDS era From the 80s until the beginning of the 2000s, the GDS have been... 

E-tourism : the evolution of the booking process automation

Jeudi 10 février 2011 by Aurélie

Tourism is one of the most dynamic sector within the web industry. Online dimension has indeed exercised a major influence for each tourism protagonist, all the more because the number of web sites is constantly increasing. Nevertheless, measures have to be taken before setting up a web site.   How to manage the back office of an e-tourism portal? Methods of stock aggregation depend on the organization and the positioning of each protagonist. The most common processes are these ones: * The CRS tool feeds the web site with offers This method has been adopted by protagonists who produce and... 

Hotels connectivity, a stake for the whole travel industry

Dimanche 6 février 2011 by Julia

In the Thirties, Conrad Hilton used to say that hotel’s performances relays first in the “hotel location”, secondly in the “hotel location” and third in the “hotel location”. This adage is still true, except that the location is not anymore physical. Indeed it plays out on the web; online visibility ensures the hotel occupancy, thereby the hotel owner only has to focus on the profitability. I agree this version is a bit simplified. However, it is true that before starting a yield or a CRM strategy, the e-distribution must be optimized, which means that  hotel rooms must be available... 

The last improvements in Google’s search results that impact the travel industry

Mercredi 17 novembre 2010 by Julia

These past few months Google has released several new functionalities that will improve the search process from a user point of view but that can strongly impact the travel industry. In fact, these new functionalities are supposed to help the user to find exactly what he is looking for, but they are also impacting his decision process. They bring more information in the search results and use more suggesting technologies. So the decision that is usually done when the user visits the first page of a site, now takes place at an earlier time (directly in Google). Instant previews Instant previews... 

Taking into account the non linear behavior of the customer in travel bookings

Lundi 27 septembre 2010 by Julia

Whatever their roles in the travel industry, suppliers and distributors have the same goal: raise their revenues. And to achieve this goal, the two main leverages consist in increasing the number of bookings and increase the value of the bookings. Both will depend of your website conversion rate and the quality of the traffic you drive in it. But as an online marketer, to improve conversion and qualified traffic you need to deeply know your customers. You can divide your customers into segments, engage conversation with them, personalize your marketing actions… These are good points that will... 

Opaque products, a niche on the rise in the travel industry

Mardi 20 juillet 2010 by Julia

At the age of rich media, web 2.0 and (price) transparency, a business model again the grain is extending in the travel industry: the sale of opaque products. This model consists in offering products (flight, hotel, rentals…) without disclosing the identity of the supplier. It will be revealed only after making a nonrefundable commitment to buy. This model is totally consistent with the behavior of price-sensitive customer. These customers are very numerous on the web (3/4 of the Internet users according to Gregg Brockway from Hotwire.com), they are brand switcher and they are above all looking... 

Towards a multi channel distribution and a customer-centric model

Mardi 12 janvier 2010 by Julia

Ten years ago, distribution channels were simple to identify and to manage: products were only sold in offline travel agencies. But nowadays, this market has evolved and customers have multiple ways, online and offline, to access to a same product. Let’s sum up this evolution from a technical point of view. First, the transition to a multi channel distribution was appeared because of a problem in the access to the stocks of the production. The new channel (the internet one) appeared like a second enterprise. They were not meant to become a global strategy for distribution and marketing...