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INFORMATICS FOR TOURISM AND HOSPITALITY NOTES


INFORMATICS FOR TOURISM AND HOSPITALITY MANAGEMENT NOTES


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DIGITAL MARKETING 

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Digital marketing meaning

Digital marketing, also called online marketing, is the promotion of brands to connect with potential customers using the internet and other forms of digital communication. This includes not only email, social media, and web-based advertising, but also text and multimedia messages as a marketing channel.

Digital marketing is the component of marketing that utilizes internet and online based digital technologies such as desktop computers, mobile phones and other digital media and platforms to promote products and services.

OWNED MEDIA
Owned media is any online property owned and controlled by a brand, such as a blog, website or social media channels. The more owned media channels a business has, the larger their digital footprint, which means more potential reach to customers and followers.

WEBSITE
a set of related web pages located under a single domain name, typically produced by a single person or organization.

A website is a collection of web pages and related content that is identified by a common domain name and published on at least one web server.

A website is a collection of publicly accessible, interlinked Web pages that share a single domain name.

BLOG

A regularly updated website or web page, typically one run by an individual or small group, that is written in an informal or conversational style.

A blog is a is a discussion or informational website published on the World Wide Web  consisting of discrete, often informal diary-style text entries (posts). Posts are typically displayed in reverse chronological order so that the most recent post appears first, at the top of the web page

NEWSLETTER

newsletter is a printed or electronic report containing news concerning the activities of a business or an organization that is sent to its members, customers, employees or other subscribers. Newsletters generally contain one main topic of interest to its recipients. A newsletter may be considered grey literature.



SOCIAL MEDIA

Social media is a computer-based technology that facilitates the sharing of ideas, thoughts, and information through the building of virtual networks and communities. By design, social media is Internet-based and gives users quick electronic communication of content. Content includes personal information, documents, videos, and photos. Users engage with social media via a computer, tablet, or smartphone via web-based software or applications.

Social media are interactive technologies that allow the creation  or sharing/exchange of information, ideas, career interests, and other forms of expression via virtual communities and network

The figures for the most popular social media websites as of January 2021 are as follows:


Facebook (2.74 billion users)


YouTube (2.29 billion users)


WhatsApp (2 billion users)


Facebook Messenger (1.3 billion users)


Instagram (1.22 billion users)


Whatsapp (1.21 billion users)


TikTok (689 million users)


QQ (617 million users)


Douyin (600 million users)


Sino Weibo (511 million users)


SOCIAL MEDIA MARKETING

Social media marketing is the use of social media platforms and websites to promote a product or service. Although the terms e-marketing and digital marketing are still dominant in academia, social media marketing is becoming more popular for both practitioners and researchers. The major social media platforms (at the moment) are Facebook, Instagram, Twitter, LinkedIn, Pinterest, YouTube, and Snapchat.

The term social media marketing (SMM) refers to the use of social media and social networks to market a company's products and services. Social media marketing provides companies with a way to engage with existing customers and reach new ones while allowing them to promote their desired culture, mission, or tone.

“Social media marketing (SMM) is the use of social media websites and social networks to market a company's products and services.” 


Influencer marketing (also known as influence marketing) is a form of social media marketing involving endorsements and product placement from influencers people and organizations who have a purported expert level of knowledge or social influence  in their field. Influencers are someone (or something) with the power to affect the buying habits or quantifiable actions of others by uploading some form of original—often sponsored—content to social media platforms like Instagram, YouTube, Snapchat or other online channels. Influencer marketing is when a brand enrolls influencers who have an established credibility and audience on social media platforms to discuss or mention the brand in a social media post.

Influencer marketing is a type of marketing that uses influencers to promote a brand to a larger market. Influencers are opinion leaders with a social following base. They appear as experts or trustworthy sources of information.



Search engine marketing (SEM)

Search engine marketing (SEM) is a form of Internet  marketing that involves the promotion of websites  by increasing their visibility in search engine results pages  (SERPs) primarily through paid advertising. SEM may incorporate search engine optimization (SEO), which adjusts or rewrites website content and site architecture to achieve a higher ranking in search engine results pages to enhance pay per click (PPC) listings.

SEM or, search engine marketing, is a highly effective way to increase your ranking on search engines like Google, and attract qualified traffic to your website. Investing in SEM is a great way for you to grow brand awareness and increase sales.

Search engine marketing (SEM) is a digital marketing strategy used to increase the visibility of a website in search engine results pages (SERPs).

Search engine marketing is also alternately referred to as paid search or pay per click (PPC).

With an increasing number of consumers researching and shopping for products online, search engine marketing has become a crucial online marketing strategy for increasing a company’s reach.

In fact, the majority of new visitors to a website find it by performing a query on a search engine.

In search engine marketing, advertisers only pay for impressions that result in visitors, making it an efficient way for a company to spend its marketing dollars. As an added bonus, each visitor incrementally improves the website’s rankings in organic search results.

Since consumers enter search queries with the intent of finding information of a commercial nature, they are in an excellent state of mind to make a purchase, compared to other sites such as social media where users are not explicitly searching for something.

When setting up a campaign within an SEM network, the marketer is prompted to:

Conduct keyword research and select a set of keywords related to their website or product;

Select a geographic location for the ad to be displayed within;

Create a text-based ad to display in the search results;

Bid on a price they are willing to pay for each click on their ad.

Text-only ads are easy to produce. Marketers enter a headline, text for the body of the ad, a call-to-action and a URL for the hyperlink.



πŸ”°CUSTOMER RELATIONSHIP MANAGEMENT πŸ”°

Customer relationship management is a process in which a business or other organization administers its interactions with customers, typically using data analysis to study large amounts of information. 

Customer relationship management (CRM) is a technology for managing all your company's relationships and interactions with customers and potential customers. The goal is simple: Improve business relationships. A CRM system helps companies stay connected to customers, streamline processes, and improve profitability.

Customer Relationship Management (CRM) is an enterprise-wide strategy for presenting a single face to the customer. A long-term relationship with customer gives the service marketers a competitive edge. A company’s revenue, profit and market share come ultimately from the customers. The need for building a relationship has become the essential part for the long-term success of the organization. 

Objectives of CRM

The following are the important objectives of CRM

Turning prospects into advocates

Minimizing defections

Having a large proportion of loyal advocates

Having a profitable relationship of the type the customers would desire and with those who desire them.

Using cross selling opportunities without annoying customers.

1. Turning prospects into advocates: The service marketers should identify and qualify prospects. Customer forms the basis on which all strategic activities should be built. The service company should convert prospects into customers. CRM uses the inputs of customer database of the company extensively. The company has to select prospective customers and identify the customer groups. Then, it should convert the customers gradually into advocates. Needless to say, satisfied customers recommend the use of services to their friends and relatives.

2. Minimizing defections: One of the important objectives of CRM is minimizing customer defections. CRM defines customer defections and determines the exact rate of customer defection. 

3. Having a large proportion of loyal advocates: A customer goes through stages in his relationship with a brand. He may finally reach the advocate stage where he actively canvasses for a brand. The service firm should try to convert its good customers into advocates, who in turn, would become the ambassadors of the brand. This follows from the first objective and should result in a large number of loyal customers

4. Having profitable relationship: Customers vary in attitude and behavior. In a competitive market place, customers are exposed to hundreds of selling messages. Customers have limited ability to process information. A number of constraints influences their decision making. 

5. Using cross selling opportunities without annoying customers: Customers can be groomed for purchasing not one product of the company but for a series of products from the same organization. 



ORM



Online reputation management (ORM) means taking control of the online conversation. Its techniques and strategies ensure that people find the right materials when they look for you on the Internet.


The purpose of online reputation management is to create balance, counteract misleading trends, and allow you to put your best foot forward.

Reputation management refers to the influencing  and controlling or concealing of an individual's or group's reputation . Originally a public relations  term, the growth of the internet and social media  led to growth of reputation management companies, made search results can make core part of an individual's or group's reputation



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it means removing as much of the middleman

as possible. To be more specific, it has to do with helping customers get more direct access to items or services by reducing or eliminating third parties

It has been several decades since disintermediation was first known (although under other terms), and it seems that disintermediation has become increasingly intense, particularly in the tourism industry where many large hotels and airlines have successfully utilized the Internet and website as a direct channel to sell to their customers.


ONLINE TRAVEL RESERVATION


An Online Reservation System is a software you can use for managing reservations for your service.Basically, an online reservation system allows a potential customer to book and pay for a service directly through a website

CHECK IN CHECK OUT

check in :This is a process of guest registration at the front office reception counter which mostly occurs from afternoon till late evening. check-out: Check-out refers to departure of the house-guests at the end of their stay which Mostly occurs from early morning till mid-afternoon


KIOSK

Kiosk Check-in is a convenient way for passengers to check-in using IndiGo kiosks located at the airport. Passengers can select their preferred seat and print their boarding pass.


Cyber security

Cybersecurity is defined as the area related to computing and telematics that focuses on protecting the computer infrastructure and avoiding all types of threats, which put at risk the information that is processed, transported and stored in any device.

Cybersecurity is a plan to protect valuable information on a personal or company database. Most hotels are aware of the risk of intrusion and have plans in place to protect information.


CCTV

CCTV stands for closed-circuit television. ... CCTV systems that use analog cameras have been around for years. They are still the most common type of camera installed in the field, experts say. Picture a camera or series of cameras with a dedicated set of wires fed into a recording device and series of monitors.


BIOMETRIC SECURITY SYSTEM

It involves using biometric security software to automatically recognise people based on their behavioural or biological characteristics. The biometric technology currently used most often in physical access control is fingerprint recognition because of its lower price


Biometric passport

It contains a security chip with all personal data and digital images. In the first phase new passports will have a 64KB chip carrying a photograph of the passport holder and in subsequent phases it will have a fingerprint

A biometric passport (also known as an e-Passport) is a passport that has an embedded electronic microprocessor chip in the cover. The passport chip contains biometric information that is used to authenticate the identity of the passport holder.



What Is an Online Travel Agent (OTA)?

An online travel agent is a third-party website that sells travel-related services offered by their partners, such as hotels, hostels, airlines, car rental companies, event organizers, and more. It’s a website where people can search for and compare various services and make bookings without an actual travel agent.




Top Global Online Travel Agencies

There are too many global OTAs to list them all here, but these stand out due to exceptional quality, wide reach, credibility, trust, and first-class support.

1.     Booking.com

Founded as bookings.nl, merged with Bookings Online, and later acquired by Booking Holdings (formerly Priceline Group), Booking.com has become the go-to booking website for all things travel. It’s one of the largest global OTAs that sells tons of activities, tours, vehicle rentals, rooms, and airfare.

It dominates the industry, along with Expedia. According to HotelTechReportBooking Holdings and Expedia control 95% of the online travel market.

Founded: 1996

Headquarters: Amsterdam, The Netherlands

Operating in: 120,000+ destinations in 220+ countries

Listings: 28+ million, including 6.2+ million accommodation units

Commission: 10-15% (15% global average)

Best for: Any accommodation type (hotels, hostels, motels, B&Bs, apartments, vacation homes, cottages, cabins, villas, resorts, boats, luxury tents, etc.), airlines, and companies offering airport taxis, car rentals, and experiences

2.     Expedia

Owned by Expedia Group, Expedia.com offers hotel rooms, vacation rentals, airfare, cruises, car rentals, and activities. It also offers package deals that can include flights, stays, and/or cars.

By partnering with Expedia, travel providers can tap into Expedia Group’s network of over 200 booking websites, including Travelocity, Orbitz, Hotels.com, Wotif, and CarRentals.com.

Founded: 1996

Headquarters: Seattle, Washington, USA

Operating in: 220+ countries

Listings: 1.8+ million vacation rentals, 590,000+ hotels, 35,000+ activities, 500+ airlines, 175+ car rental companies

Commission: 10-30% (10-15% for big brands; 15-30% for independents)

Best for: Any accommodation type, airlines, car rental companies, cruise lines, and tour operators

3.     Viator

Just like its parent company, TripAdvisor, Viator isn’t an OTA. It partners with OTAs offering travel activities, tours, and attraction tickets, and lets them create a TripAdvisor listing to grow sales.

It offers top-notch experiences, including VIP tours, which is why it’s prized in the industry as one of the best metasearch engines.

Founded: 1997

Headquarters: Needham, Massachusetts, USA

Operating in: 48+ countries

Listings: 345,000 activities, tours, and attraction tickets

Commission: 8%

Best for: Travel companies offering experiences

4.     Hotelbeds

With over 60,000 travel distributors in over 140 markets, Hotelbeds is one of the top B2B travel agents. It has been growing exponentially after acquiring Tourico Holidays and GTA in 2017.

This Spanish OTA offers hotel stays, car hires, flight tickets, attraction tickets, airport transfers, and activities.

Founded: 2001

Headquarters: Palma de Mallorca, Spain

Operating in: 185+ countries

Listings: 180,000+ hotels, 24,000+ transfer routes, 18,000+ activities and tickets, 500+ car rental suppliers, 40+ airlines

Commission: 20-30% (23% average)

Best for: Hotels of any size, companies offering travel experiences, airlines, and car rental companies

5.     Hostelworld

Although it specializes in hostels, Hostelworld also promotes hotels and B&Bs. Additionally, it offers airport transfers, car rentals, flight tickets, tours, and activities.

Showcasing over 13 million guest reviews, it aims to help travelers, particularly millennials, find the best deals and experience various cities like locals. It’s especially popular among backpackers.

Founded: 1999

Headquarters: Dublin, Ireland

Operating in: 178+ countries

Listings: 36,000+

Commission: 10-25% (15% average)

Best for: Hostels and tour operators

The winner: Booking.com

Booking.com takes care of entire vacations seamlessly, which is why most travelers prefer it. It’s excellent for all accommodation properties and other travel providers, and its commission rates are generally lower than the other OTAs’.

Top Online Travel Agencies in APAC

The Asia-Pacific region boasts of various OTAs with top-quality services and low commission rates.

1.     Agoda

Owned by Agoda Company, a subsidiary of Booking Holdings, Agoda is a major player in APAC with growing connections in Europe and the US.

It offers hotel accommodation, vacation rentals, apartments, villas, and bungalows. It also provides flights, airport transfers, car hire, and activities, but those rely on metasearch to find the right OTAs for such services.

Founded: 1998

Headquarters: Singapore

Operating in: 65+ countries

Listings: 2.5+ million

Commission: 15%

Best for: Hotels, especially in Asia

2.     Trip.com

Trip.com is the largest OTA in China that went through many acquisitions over the years. Expedia owned it at one point before Trip.com Group (formerly CTrip) acquired it in 2017.

This Chinese OTA specializes in hotels but also provides fights, car rentals, train tickets, activities, tours, and attraction tickets.

Founded: 1999

Headquarters: Shanghai, China

Operating in: 200+ countries

Listings: 1.2+ million hotels, of which 700,000+ are international

Commission: 4% average (up to 19%)

Best for: Hotels

3.     MakeMyTrip

MakeMyTrip is a large OTA in India that provides hotel rooms, flight tickets, train tickets, bus tickets, and holiday packages.

It leverages AI, machine learning, and big data, enabling it to increase its partners’ bookings. It has been one of the most innovative OTAs in India from its humble beginnings.

Founded: 2000

Headquarters: Gurugram, India

Operating in: 180+ countries

Listings: 460,000+

Commission: 15.5% average

Best for: Hotels

4.     Klook Travel

Klook Travel is a smaller APAC player than the previous three, but it’s a relatively new company.

Still, it has grown into a popular OTA in China, offering a wealth of travel experiences, transportation options, and hotel bookings. We believe it’ll play with the big guys in the near future. It certainly has what it takes.

Founded: 2014

Headquarters: Hong Kong, China

Operating in: 400+ destinations in 28+ countries

Listings: 40,000+ accommodation units, 100,000+ activities

Commission: 15-25%

Best for: Hotels and tour operators

5.     Veltra

Veltra is a tour operator company that deserves a spot on this list because of its extraordinary offers. It partners with tour operators that offer fun things to do around the globe, including cultural events, sightseeing tours, spa getaways, and many other activities.

Founded: 1991

Headquarters: Tokyo, Japan

Operating in: 78+ countries

Listings: 13,000+ tours and 6,000+ activities

Commission: 8-10%

Best for: Tour operators

The winner: Trip.com

Trip.com wins this race because of its wide reach, a plethora of different offers, and some of the lowest commission rates for participating partners.

Top Online Travel Agencies in Latin America

There are fewer OTAs in the LATAM market than in the rest of the world, and most of them have a narrower reach. These are the most popular.

1.     Despegar

Despegar is the largest OTA in Latin America that serves the entire region and then some. It has been growing in popularity in recent years, so we might see it expand to more markets. Expedia owns a portion of its shares, so it’s sure to keep growing.

It specializes in hotels and flights but also provides vacation rentals, car rentals, activities, and packages.

Founded: 1999

Headquarters: Buenos Aires, Argentina

Operating in: 50+ countries

Listings: 500+ airlines, 520,000+ accommodation options, including 150,000+ hotels

Commission: 19% average

Best for: Hotels and airlines

2.     BestDay.com

Offering its services to countries in America, Asia, and Europe, BestDay.com is becoming more popular worldwide, especially since Despegar acquired it recently.

It’s the largest OTA in Mexico that also offers bookings for hotels, flights, car rentals, tours, activities, and vacation packages. Additionally, it provides airport transfers at the convenience of its travelers.

Founded: 1984

Headquarters: CancΓΊn, Mexico

Operating in: 50+ countries

Listings: 230,000+ hotels, 70+ airlines

Commission: N/A

Best for: Hotels

3.     PriceTravel

PriceTravel specializes in hotel and flight bookings and offers packages and tours as well. It provides bookings of some of the top destinations in Mexico, the US, the Dominican Republic, and the Caribbean.

We especially love it because it promotes social responsibility and human and environmental well-being.

Founded: 2000

Headquarters: CancΓΊn, Mexico

Operating in: 30+ countries

Listings: 249,000+ hotels and 500+ airlines

Commission: N/A

Best for: Hotels and airlines

4.     Tiquetes Baratos

Tiquetes Baratos (lit. cheap tickets) is owned by PriceTravel and has the same connections. It’s primarily a flight OTA and provides hotel bookings, airport transfers, car rentals, package deals, bus tickets, cruises, and tours.

Apart from excellent offers at competitive prices, it stands out because of its personalized services, which include weekly emails with prominent recommendations.

Founded: 2009

Headquarters: BogotΓ‘, Colombia

Operating in: 30+ countries

Listings: 249,000+ hotels and 500+ airlines

Commission: N/A

Best for: Airlines and hotels

5.     Almundo

Almundo may not be as big as Despegar, but it’s just as popular in Argentina and the rest of LATAM. CVC Corp.’s Avantrip acquired it recently, which seems quite promising for Almundo’s future growth.

Almundo is an OTA with some of the lowest commission rates, and it offers bookings for hotels, flights, car rentals, packages, activities, and even travel insurance.

Founded: 1992

Headquarters: Buenos Aires, Argentina

Operating in: 18+ countries

Listings: 100,000+ hotels

Commission: 2-7%

Best for: Hotels

The winner: Despegar

All of these OTAs specialize in hotels and flights and offer additional travel services, but Despegar is the obvious winner. It may have higher commission rates, but its high-quality services and wide reach make the fees worth paying.

Top Online Travel Agencies in Europe

The European market doesn’t have a shortage of high-quality OTAs. Apart from Booking.comHostelworld, and Hotelbeds, there are plenty more that you could consider for a partner. Here are some of the best.

1.     AtrΓ‘palo

AtrΓ‘palo, or Catch It, is a widely-favored OTA that offers airfare, hotels, car rentals, train tickets, event tickets, cruises, and packages.

It was always focused on European travelers, but it recently started expanding into Latin America. It provides its partners with AtrΓ‘palo Extranet, a feature-rich platform with tools for boosting their ranking and improving profitability.

Founded: 2000

Headquarters: Barcelona, Spain

Operating in: 13+ countries

Listings: N/A

Commission: N/A

Best for: Hotels

2.     On the Beach

On the Beach is a metasearch platform that helps travelers find hotels, flight tickets, and airport transfers provided by OTAs.

We decided to include it here because It’s massively popular in the UK, especially among Britons looking to book a package holiday.

Founded: 2004

Headquarters: Manchester, England, the UK

Operating in: N/A

Listings: N/A

Commission: N/A

Best for: Hotels and airlines

3.     eDreams

eDreams is one of the largest OTAs in Europe. It’s part of eDreams ODIGEO Group that operates in more than 46 countries worldwide.

It provides hotels, airfare, flight + hotel packages, vacation rentals, activities, car rentals, and airport transfers.

Founded: 1999

Headquarters: Barcelona, Spain

Operating in: 40+ countries

Listings: 1.1+ million accommodation units, 665+ airlines

Commission: 20% average

Best for: Hotels and airlines

4.     Skyscanner

Acquired by Trip.com Group in 2017, UK-based Skyscanner is a metasearch platform that offers services from over 1,200 travel providers.

Dedicated to simplifying travel, it offers only the most essential services – flight tickets, hotels, and car rentals. It’s focused on sustainable travel and makes bookings a breeze.

Founded: 2003

Headquarters: Edinburgh, Scotland, UK

Operating in: 50+ countries

Listings: 1.8+ million hotels

Commission: N/A

Best for: Hotels and airlines

5.     Kiwi.com

According to Deloitte, Kiwi.com is the fifth fastest-growing tech company in Europe, the Middle East, and Africa. It’s one of the most innovative metasearch engines that offers flights, hotels, trains, and car rentals.

Thanks to partnerships with Booking.com and Rentalcars.com, it offers travel providers excellent opportunities to improve sales.

Founded: 2012

Headquarters: Brno, Czech Republic

Operating in: N/A

Listings: N/A

Commission: 3%

Best for: Airlines

The winner: eDreams

Most of these OTAs haven’t disclosed their commission rates, countries of operation, and the number of listings. Still, we believe eDreams might be the best to partner with, as it’s part of the world-renowned eDreams ODIGEO Group, which offers numerous benefits.

Top Online Travel Agencies in the US

Apart from Expedia, the US travel market is rich with many other high-quality online travel agencies. Most of those below are part of Expedia Group.

1.     Getaroom

Founded by Dave Litman and Bob Diener, the former CEO and President at Hotels.com, respectively, Getaroom is a big player in the US that’s great for finding special deals.

It’s a unique OTA that offers hotel bookings, but with a twist. While people can book rooms without an agent, they can also call a toll-free number to get discounts or other best-value offers.

Founded: 2009

Headquarters: Dallas, Texas

Operating in: 50+ countries

Listings: 130,000+ hotels

Commission: N/A

Best for: Hotels and independent boutique properties

2.     Travelocity

Ever since Travelocity was acquired by Expedia Group in 2015, it has become a household name globally. Avid travelers keep flocking to it for cheap hotel deals and other discounted offers.

Travelocity specializes in hotels and all-inclusive resorts, but its services also include flights, cars, vacation packages, cruises, and various experiences.

Founded: 1996

Headquarters: Dallas, Texas

Operating in: 70+ countries

Listings: 50,000+ hotels, 700+ airlines, and 50+ car rental suppliers

Commission: 15% average

Best for: Hotels and resorts

3.     Hotels.com

Also part of Expedia Group, Hotels.com focuses on deals on hotels and vacation rentals. Its partners are major hotel chains, self-catering properties, and independent hotels.

It also provides car rentals, airfare, and vacation packages.

Founded: 1991

Headquarters: Dallas, Texas

Operating in: 200+ countries

Listings: 325,000+ hotels in 19,000+ locations

Commission: 8%

Best for: Hotels

4.     Hotwire

Yet another Expedia Group company, Hotwire, has partnered with Hotels.com and offers the same deals – flights, hotels, cars, and vacation packages.

The site is a bit quirky in that it uses opaque pricing, meaning it hides hotel names. Travelers can see the names only after they make a booking. As Hotwire states on the website, it does so to help customers “score 4-star hotels at 2-star prices.”

Founded: 2000

Headquarters: San Francisco, California

Operating in: 200+ countries

Listings: N/A

Commission: 15% average

Best for: Four-star hotels and resorts

5.     Orbitz

Owned by Orbitz Worldwide, a subsidiary of Expedia Group, Orbitz is yet another big OTA in the US travel market, especially in North America. It offers hotel deals, airfare, vacation rentals, car rentals, packages, activities, and cruises.

Orbitz also serves as a metasearch engine. Its Vacation Value Finder feature helps travelers secure the best deals from other OTAs.

Founded: 2001

Headquarters: Chicago, Illinois

Operating in: 70+ countries

Listings: 500,000+ hotels, 455+ airlines, 25+ car rental suppliers, and 18+ cruise lines

Commission: 15% average

Best for: Airlines and hotels

The winner: Travelocity

It’s hard to single out just one of all these massive OTAs, especially since most are Expedia Group companies. All of them provide first-class services to both their partners and customers.

However, Travelocity stands out because it’s more intuitive and provides travelers with useful content for booking the best adventures. That also helps its participating travel providers increase sales. Hotels.com offers the lowest commission rates, so it may be the first choice for many hotels.




The Global Distribution System (GDS) is a primary reservation tool for travel agents. GDS is a network that enables travel agencies and their clients to access travel data, shop for and compare reservations options, and book travel. ... The three most important GDS systems are Amadeus, Sabre and Galileo.


The Global Distribution System is a tool for travel agents that enables transactions between travel industry service providers and travel agencies.

global distribution system (GDS)

 

πŸ›‘GDS in the hotel industry


A GDS is a worldwide conduit between travel bookers and suppliers, such as hotels and other accommodation providers. It communicates live product, price and availability data to travel agents and online booking engines, and allows for automated transactions.

The GDS is often used to tap into the corporate travel market because it has the ability to present hotels, flights, and car rentals in one simple interface which is convenient. Many companies organising trips for their staff will use the GDS as their preferred booking method.

The history of global distribution systems dates back to the 1960s when a more sophisticated method was needed to keep track of flight schedules, availability, and prices.

As early as the 1970s GDSs were some of the first companies in the world to facilitate business to business (B2B) electronic commerce (now more commonly known as ecommerce). Airlines realised that by automating the reservation process for travel agents, they could make the travel agents more productive and essentially turn them into an extension of the airline’s salesforce.

Four of the major legacy GDSs are:

  • Amadeus
  • Galileo
  • Sabre
  • Worldspan

Hoteliers are always looking at ways to increase their reach to attract more customers, increase revenue, and make a profit. It seems a global distribution system (GDS) is a valuable channel to achieve this. A GDS passes on hotel inventory and rates to travel agents and travel sites that request it and also accepts reservations



A global distribution system (GDS) is a network, which allows travel agents to access hotel inventories and sell rooms to their clients. For those in the hotel industry, this functions as an important method for distribution, allowing access to a wider customer base



A global distribution system is a computer network, which empowers service providers in the travel industry to carry out seamless transactions. In particular, a GDS is often used by a travel agency, in order to see real-time information and data about the availability of hotel rooms, flights and other travel services.

 Benefits Hotel -GDS

Although those in operating in hotel management aim to maximise the number of direct bookings they attract, using a global distribution system helps to reach a larger number of customers. This is because the GDS provides a single point of access for thousands of travel agents across the globe, who can then book hotel rooms for their customers.


 Costs of Using a Global Distribution System

While there are numerous benefits of using a GDS, it comes at a cost too. Standard practice is that a hotel will pay a small initialisation fee, followed by transaction and/or agent fees on every booking that is made. These fees can vary significantly, but it is not unusual for the fees to account for around 10 percent of the amount paid.


The ‘Big Three’ Global Distribution Systems

Hotels can turn to a number of different GDS systems around the world, with each one having its own unique features and target markets. However, it is generally accepted that there is a ‘big three’ within this industry, which are responsible for the vast majority of travel agency bookings.

1. Amadeus GDS

When looking at market share for global distribution systems, Amadeus GDS ranks as the market leader and it is estimated that somewhere in the region of 40 percent of all travel agency bookings using GDS systems go through this particular network. However, most of these bookings are linked to flights, rather than hotel rooms.

2. Sabre GDS

The Sabre global distribution system is the closest competitor for Amadeus when it comes to total market share, and it is actually more proportionally reliant on the hotel industry than Amadeus is. In total, it is estimated that more than 200,000 hotels use the network to connect with travel agencies.


3. Travelport GDS

Finally, Travelport is a company that owns the Worldspan, Galileo and Apollo systems. While the parent company is based in the United Kingdom, the Worldspan and Galileo GDS databases are situated in the United States. As an organisation, it provides GDS services and a variety of other travel industry solutions


Connecting  Hotel to All Global Distribution Networks

For the most part, hotels connect to GDS networks via a GDS provider. Such a provider will function as an intermediary between the hotel and the global distribution system, and in most cases a GDS provider will actually connect your hotel to all of the three major GDS systems at once, rather than focusing on a single one.


GPS

GPS stands for global positioning system and it has truly affected the globe in the way we travel. ... Even vehicles are equipped with GPS to find routes and also the vehicle in case it is stolen. When the vehicle is equipped with GPS, it is in the constant connection with the satellite to track its actual location


Passenger Name Record

PNR is the abbreviation of Passenger Name Record and it is a digital certificate allowing passengers to do online check-in or manage their bookings in a short time. Also used as booking number, Passenger Name Record is a code with 6 alphanumeric characters (letters and numbers are used together


PNR Creation
✓ Always create the basic PNR with the 5 mandatory elements (Name, Itinerary, Contact, TK element, Reference, End Transaction) and wait for the Airline locator

travel itinerary is a schedule of events relating to planned travel, generally including destinations to be visited at specified times and means of transportation to move between those destinations






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