Difference between revisions of "Distribution"
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Emerald Forest Hotel offering an emerald hotel experience!
| Run your own hotel in this management simulation.
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* 30% directly from the own reservation system (CRS), royal customers, website etc. | * 30% directly from the own reservation system (CRS), royal customers, website etc. | ||
* 20% via agents (OTA, travel companies, partners etc), who would get 10% commission on an average | * 20% via agents (OTA, travel companies, partners etc), who would get 10% commission on an average | ||
* 30% via [[aggregator|aggregators] like Bookings.com, who would get [https://www.quora.com/How-much-commission-is-booking-com-charging-their-partner-hotels 10% commission on an average] | * 30% via [[aggregator|aggregators]] like Bookings.com, who would get [https://www.quora.com/How-much-commission-is-booking-com-charging-their-partner-hotels 10% commission on an average] | ||
* 15% via [[affiliate]] links, who you would pay (cost per sale) [https://blog.travelpayouts.com/en/selecting-hotel-affiliate-program/ commission would be like 5% on an average]. | * 15% via [[affiliate]] links, who you would pay (cost per sale) [https://blog.travelpayouts.com/en/selecting-hotel-affiliate-program/ commission would be like 5% on an average]. | ||
* 5% via Daydeal sites like Groupon | * 5% via Daydeal sites like Groupon | ||
Revision as of 15:37, 10 October 2020
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Which distribution channels?
For now the hotel, in their distribution (so getting customers and occupancy in the hotel) mainly relies on its own sales. So in the variable costs you will see no costs for this at all.
This situation doesn't really match reality anymore. Looking at the market as a benchmark, it would be more realistic to have:
- 30% directly from the own reservation system (CRS), royal customers, website etc.
- 20% via agents (OTA, travel companies, partners etc), who would get 10% commission on an average
- 30% via aggregators like Bookings.com, who would get 10% commission on an average
- 15% via affiliate links, who you would pay (cost per sale) commission would be like 5% on an average.
- 5% via Daydeal sites like Groupon
Intersting read on Hospitality net is The economic impact of OTAs in the EU: summary report.
So looking ahead at the future, using these partners would also mean having the prices go up a bit, to compensate for the commissions to be paid. Or, having a higher occupancy rate to compensate for the additional costs.
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