1876 Canterbury Drive, Las Vegas, NV 89119
Book New Customers with Online Global
Marketplace
• Providing online booking and distribution through reservation software to clients in the adventure travel and vacation rental industries since 2001.
• Providing technical and business expertise to distribution partners of behalf of clients since 2003.
• Clients have booked over $1.5 Billion in web site bookings and over $250 Million through online marketplaces all from within their reservation software.
Ted’s Street Credentials
Overview
A
• A new marketing tool is developing within the Adventure Travel industry, real-time online distribution marketplaces. Enabling operators to reach much larger bases of potential new customers.
B
• These opportunities are not all created equal. Challenges can include: financial models & cost, required staff time, and potential overbooking.
C• Learn how to evaluate, implement, and benefit from
these new opportunities.
Industry Challenge
2011 – PhoCusWright study pegs annual USA travel activity market worth at $20.8 billion
"The challenges of connecting to myriad of small providers with limited technical capability and a low average transaction value have inhibited online distribution of travel-related activities," says Douglas Quinby, senior director, research at PhoCusWright. "But while the market remains highly fragmented, key activity aggregators and a flood of innovation related to local search, social media and mobile devices are creating unprecedented opportunities."
- See more at: http://www.traveldailynews.com/news/article/41734/travelers-spend-more-on-in-destination#sthash.Pam49MWV.dpuf
Methods of Finding New Customers
Ted’s Raft,
Canoe and
KayakEmporiu
m
Repeat and
Referral
Phone
Website –
Request Only
Website – Online Booking
Online Distribut
ion
Online Distributi
on
OTA’s
Adventure Travel
Sites
Travel Agents, Central
Res, DMO
Long-tail of the
internet
Adventure Distribution Channels
Real World
My wife and I are in Albuquerque, New Mexico and looking for an activity, we go
TripAdvisor
Distribution Business Models
Listing Service• Flat rate fee per activity or tour operator• Payment terms can be monthly or annual• You work directly with your guest
Reservation Commission• Commission as a % or $ amount per
reservation• Only cost is when a reservation is generated• You collect the funds from your guestWholesaler• Net rate or commission %• Only cost is when reservation is generated• They typically collect the funds from your
guest
Extranet Distribution – Try to avoid
An extranet is access to a web site which has no connection to reservation software
Manual data entry and management of inventory, availability and reservations
Reservations are received via email or fax from each partner
Staff hours to maintain multiple databases and accounting
Real-time Distribution – One & Only
Real-time - automatic connection of a web site and reservation software
Automatic sync and management of inventory, availability and reservations
Reservations automatically updated in and out of all partners with accounting
Staff hours replaced with a virtual reservationist working 24x7x365
Real-time Distribution Ingredients
Maximum Distribution = Maximum Revenue
Reservation software with real-time connectivity to distribution partners. Should not have to change software or MSP Services.Selecting distribution partners to work with should be a business decision not a technology decision.
Full set-up of a new partner should take no longer than 30 minutes, then is should be automatic.
Real-time confirmation against a reservation system, which is the “database of authority”
Real-time Distribution Operations
Reservation software is used to manage day to day operations, as normal.
Select which activities, rentals, lodging or packages to flow to which distribution partner.
Virtual reservations keeps reservation software and each distribution partner system automatically in sync.
Reservations are confirmed against and flow into reservation software, “database of authority”.
Guest and financial information flow automatically into reservation software. Accounting of commissions and net rates are automated.
Other Challenges
Software company or distribution partner? Focused on your business or their consumer business?
Ownership of customers booked by a distribution partner?
Distribution partners can increase your SEO costs. Example, they may bid on same key words.
High Commissions? What is your current customer acquisition cost? Amortize with repeat customers?
Self manage each distribution partner and commissions? Or partner to manage distribution partners and commissions?
Other Challenges
Thank You!
Thanks to everyone attending today’s session!
Ted MillerPartnerAdventure Office, LLC303-292-5522 Ext: [email protected]
Questions?
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