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 | Benu Aggarwal President of Milestone Internet Marketing |
TOPIC: Internet Marketing
Question:
What is the first step in obtaining information on the best way to upgrade my business with travel sites and marketing techniques?
Answer
The very first step that needs to be taken is to figure out how the hotels in your area are listed on the first two pages of the travel sites. Check to see if they are listed just through the global distribution system (GDS) or if they are participating in the travel sites' merchant model programs. Travel sites give priority to hotels, which are participating in special net programs over GDS properties. If you prefer not to sign up for the merchant model program, you will be listed on the travel site anyway - through the GDS. Ranking, however, will be based strictly on your rates.
However, if the hotels on the first two pages are signed up for the merchant model rates, then to compete with them, you should consider participating in the merchant model program. For example, to sign up for the merchant model program for Travelocity, you will have to enroll in their Good Buy program; for Expedia, you will need to enroll in the Expedia Special Rate; and so on.
Question:
Would it be a good idea to market a price 20 percent higher on an Internet site so as not to sacrifice the rate structure?
Answer
Unfortunately, the bad news with travel sites is that if you want them to produce for you then you cannot determine pricing without doing a competitive analysis. The way your competitors are defined online can be completely different from the way you define your "conventional" competitors. The market and your competitors already determine pricing for your area on the travel sites. If you are participating in more than one travel site, the most important thing to keep in mind is that you will have to maintain sell-rate parity. If your rate on any one travel site is lower than the other, you can be severely penalized by the site where your rates are higher.
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© 2008, France Publications, Inc. All Rights Reserved. Photos in header (from left to right) are courtesy of InterContinental Hotels Group; AmericInn International LLC; and The Courtyard by Marriott-Los Angeles/San Fernando Valley. |
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