episode 2 (the final episode) The basic understanding of hotel distribution channel

Hello everyone, as promised today I am delighted to share the subject of the basic understanding of distribution episode 2 the final episode, in this episode 2 i will share as below key points?
HOTEL DISTRIBUTION SUMMARY, and in this summary there will be some key points as below
FIRST OF ALL CENTRAL RESERVATION SYSTEM, for most of the chain hotel, if you are independence hotel you utilize reservation system provided by a private company, but for big international chain hotel such as Starwood, Accor, Marriot, IHG and so on, they have develop their own system call CRS, central reservation system.
WE ALREADY TALK ABOUT METASEARCH, if you go to google, Trivago, kayak and so on, we have this metasearch who was collecting all data from difference business unit and give us the analysis and comparison, in term of price of the same product to make our choice easier.
TOUR OPERATOR, create package, create tour and selling tour, not selling airline, not selling rental car, not selling hotel room, but selling tour, so in order to create the package, tour operator need to contact each business unit one by one, for example contact hotel A, saying I need 5 rooms per day so what is the best price by guarantee the number of room and then got the allotment, after that contact airline for the available seat, how many seat available can be purchased and what is the cut of date, then contact the car company for availability for airport pick up and get the special price, so need to contact all industry related to this Tour operator business and work on behalf of the market to create tour package.
WHOLESALER, similar concept as tour operator, except wholesaler does only one business industry, for example, I am a wholesaler for hotel so I do only hotel business, how to make money, I buy in big volume of rooms, for example, Miki travel and Gulliver, so most of the hotel know this Gulliver travel has lot of purchasing power because Gulliver have a contract with 1 million small travel agencies, so Gulliver receive a very special rate from most of the big hotel chain such as Accor, IHG, Starwood and so on, so Gulliver contact those big chain hotel to obtain a special discount, for example Gulliver guarantee to buy 30,000 room night per year and with that big volume of business those big chain hotel agree to offer a special discount of 25% from the rack rate or public rate, so after got a 25% special discount, then Gulliver will sale those rooms to the small retail travel agency and mark up, for example 15% mark up, when the small travel agent received the price from wholesaler, the price is still 10% cheaper than public price then the small travel agent can mark up 10% and sell to the customer.
CHANNEL MANAGER
SWITCH, is also name of the system that we need to understand for distribution flow, switch mean, before everything need to update one by one, now hotel start to realize that something is wrong, why we need to update everything, can we just update our central reservation system and then it will be communicated with all difference channel, for example some hotel use switch system call Pegasus.
TMC, stand for Travel Management Company, mainly for business traveler, big company such as Samsung, Toyota, Sony and so on when they make booking for their superior such as CEO, GM, Managing director, they do not make the booking themselves they contact TMC normally they have contracted with on of the TMC, and then TMC will do all the booking on their behalf
THE BUSINESS MODEL OF OTA, such as merchant model and retail model
RATE PARITY, the rate parity is quite important because if we do not keep this provision on the contract we will have to pay the penalty we have to give the discount to the customer and also our reputation for our own website is not really good, so for the same date for the same product the rate have to be always same regardless of channel, it doesn’t matter what kind of channel the guest approach the rate should all same if we are selling for the same product for the same date

After watching from the begging till the end, I hope you will learnt some additional knowledge about distribution, please enjoy watching the basic understanding of distribution episode 2 the final episode.