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Amadeus Hotels Sales & Marketing Seminar

Amadeus Hotels Sales & Marketing Seminar. Terje Eikevold 19th November 2003. The agenda. Booking trends Amadeus Hotels Benefits for travel agents The opportunities… Questions & Answers. Booking trends. Industry Trends 1999-2002. Traditional revenue streams of TAs under pressure.

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Amadeus Hotels Sales & Marketing Seminar

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  1. Amadeus Hotels Sales & Marketing Seminar Terje Eikevold 19th November 2003

  2. The agenda • Booking trends • Amadeus Hotels • Benefits for travel agents • The opportunities… • Questions & Answers

  3. Booking trends

  4. Industry Trends 1999-2002 Traditional revenue streams of TAs under pressure TAs need to become more productive and reduce costs Smarter shoppers expecting more from their TAs Corporations reducing travel costs

  5. Industry dynamics – Hotel Trends • 7% of all hotel bookings were made online 2001 • 16% of all hotel bookings is expected via online by 2007 • Current belief is that the shift in consumer behaviour is mainly away from the phone and to the net • GDS bookings in 2002 grew by 0.5%

  6. And…what about the booking trends?? • By internal hotel industry segment… • 65% of the bookings are business travelers • 18% of the bookings are leisure travelers • 17% of the bookings are groups and incentives • By channel… • 80% of the bookings are directly to the hotel • 12% of the bookings are voice/CRS/web • 8% of the bookings are GDS

  7. GDSs Third Party Internet Sites Direct Distribution • Opodo • LastMinute • Hotels.com • Chain Sites • Orbitz • Expedia • Travelocity • Airline Sites Sabre Galileo Worldspan Amadeus Local Property Sites Travel Agents C O N S U M E R S The Electronic Channels E L E C T R O N I C C H A N N E L S

  8. Amadeus Hotels

  9. Amadeus Hotels in a snapshot 5.125.517 bookings in 2002, +2.5% vs 2001 322 hotel chains, + 54,000 hotels – more than any other GDS! Increased productivity: bookings made 4 times quicker than any other method. 1A faster than any other GDS!

  10. Amadeus Hotels - Key strategies • Redesigning e-Travel product offering • Aergo and Planitgo enhanced easy to use functionality • Deliver a Multimedia product • Pictures available for all Amadeus and NMC applications • Maps already available in e-Travel applications • Ensure Dynamic Access, Interactive Cancel and Seamless Service Information is widely adopted by the providers • 35-40 % of hotel bookings in Dynamic Access by year end 2003 • Vista 2.1 • Enhanced functionality and easy booking flow

  11. Amadeus Hotels: The benefits

  12. Travel Agency benefits • Back office Integration • PNR integration • Increased Productivity • Cost effective • Accurate / real time information • Quick response

  13. Why book Hotels on Amadeus? • Revenue Increase: • Hotel Provider commission • New business opportunities • Incentive schemes • Cost Savings: • Save time – 7 seconds confirmation • Save money

  14. Provider benefits • Cost efficiency • Global presence • Seamless information • Yield management • Marketing tool • Customer loyalty

  15. The opportunities..

  16. Let’s take a look at the big picture …Scandinavia

  17. Market Potential - Scandinavia

  18. How much can we grow the business? Let’s look at Air/Hotel ratios: 2001 2002 Norway 19:1 19:1 Sweden 20:1 19:1 Denmark 28:1 26:1 Scandinavia 20:1 20:1 Can we improve this?

  19. How much can we grow the business? Some travel agency ratios in 2002 19:1 Air / Hotel Ratio14:1 Air / Hotel Ratio12:1 Air / Hotel Ratio

  20. What if....... Result: additonal revenue – incremental segments & hotel commissionAnd for the providers – reduced cost!

  21. …to get those extra bookings! Awareness & Communication Step 1 Step 2 Training & Education Step 3 Segmentation Step 4 Provider Involvement Promotion Step 5 Step 1-5 Follow-up

  22. Rate loading process (1) • Rate negotiated between travel agent/corporate client & hotelier • Contract signed covering: • Rate & terms • Commission (Yes/no) • Rate loading issues • Travel agent requests 3 letter rate code from Amadeus if one does not exist already • Data Management Services • Email: NCERATECODE@AMADEUS.NET • Queue: QE/NCE1A0999/97C9

  23. Rate loading process (2) • Travel agent informs corporate client of rate code • Travel agent provides hotelier with: • Copy of signed contract • 3 letter rate code • Office ids which should have access to the rate • Commission Y/N • Rates & terms • Provider’s database department loads rates in • CRS & GDS • Provider informs travel agent & corporate client when rate has been loaded & is available for sale

  24. Important to remember • Agreements - between hotel provider & travel agent or ratecode ‘owner’ • Rate codes requested from Amadeus • Hotel Provider responsible for: • Loading rates • Maintaining security profile with office ids • All security update requests must be forwarded to each hotel provider maintaining the rate by the travel agent • All details inGGHTLNEGO.

  25. Amadeus – Rate Plans Booked • COR10% • RAC15% • WKD2% • PRO7.5% • SPC2.5% • NEGO63%

  26. Questions? Thanks!

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