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Types of Reservation Sources

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Types of Reservation Sources

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trcchywqg2
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Types of Reservation Sources

Room reservations typically come from a variety of sources. Understanding these sources helps
hotels manage their revenue, target marketing efforts, and ensure a seamless guest experience.
Here's a breakdown of the main types:

1. Direct Sources

 Walk-Ins:
o Guests who arrive at the hotel without prior bookings.
o Often depend on room availability at the moment.
o Typically, these bookings have higher flexibility in rates but less lead time for the
hotel.
 Hotel Website:
o Bookings made directly through the hotel's official website.
o Advantage: No commission fees and more control over pricing.
o Often includes promotional offers to attract direct bookings.
 Phone or Email:
o Guests calling or emailing the hotel to make reservations.
o Common for older demographics or guests with specific requests.
o Requires skilled staff for handling inquiries and upselling opportunities.

2. Indirect Sources

 Online Travel Agencies (OTAs):

Booking Process:

o Guest searches for hotels on platforms like Booking.com.


o Selects a hotel based on location, price, and reviews.
o The OTA processes the payment or forwards guest details to the hotel for
payment upon arrival.

Revenue Impact:

o OTAs charge high commission fees (15–20% of the booking amount).


o Provides a large volume of bookings but reduces profitability per reservation.

Advantages:

o Global visibility, especially for smaller or independent hotels.


o Attracts guests who prefer convenience and a variety of choices.

Examples: Booking.com, Expedia, Agoda.


 Global Distribution Systems (GDS):

Booking Process:

o Travel agents use GDS platforms to book hotels along with flights and other
services.
o The GDS connects directly with the hotel's reservation system.
o Used by travel agents to book hotel rooms along with flights and car rentals.
o Common for corporate and business travelers.
o GDS typically charges a fee for each booking.

Revenue Impact:

o GDS fees are typically lower than OTA commissions but still add to the cost.

Advantages:

o Ideal for targeting business travelers and corporate clients.


o Increases exposure to travel agencies worldwide.

Examples: Amadeus, Sabre, Travelport.

 Wholesalers and Tour Operators:


o Examples: Bedbanks like Hotelbeds, or traditional tour operators.
o Bulk-buy rooms from hotels at discounted rates and resell them to OTAs or travel
agents.
o Advantage: Guaranteed revenue for unsold rooms, but often at lower margins.
3. Corporate Clients

 Companies or organizations with negotiated rates for their employees' frequent stays.
 Example: A tech company arranging monthly stays for its executives.
 Advantage: Steady, predictable bookings, often during weekdays.

4. Event and Group Bookings

 Guests booking as part of an event (e.g., conferences, weddings, or tour groups).


 These are often made in blocks and involve special rates or packages.
 Requires close coordination with the sales team.

5. Social Media and Marketing Campaigns

 Guests who book after seeing promotions on platforms like Instagram, Facebook, or
TikTok.
 Example: A hotel runs a discounted weekend package campaign that generates traffic to
their website.
 Can include influencer marketing to boost visibility.
What is an OTA (Online Travel Agency)?

OTAs are web-based platforms that allow customers to search, compare, and book hotels,
flights, car rentals, and other travel-related services. They cater primarily to individual travelers
(both leisure and business) and provide a direct-to-consumer booking experience.

Examples of OTAs:

 Booking.com
 Expedia
 Agoda
 Hotels.com
 Trip.com

How OTAs Work:

1. OTAs list a hotel's available rooms and rates on their platform.


2. Customers browse the platform, compare options, and make reservations directly through
the OTA website or app.
3. The OTA collects guest details and, in some cases, processes payment.
4. The hotel receives the booking information via a channel manager or directly into its
Property Management System (PMS).

Advantages of OTAs:

 Global visibility for hotels, especially smaller or independent properties.


 Easy to use for guests, offering photos, reviews, and price comparisons.
 Drives significant booking volume, especially from leisure travelers.

Drawbacks of OTAs:

 High commission fees (15–20% of the booking amount).


 Hotels have limited direct interaction with the customer until after the booking is made.
What is a GDS (Global Distribution System)?

GDS is a network-based system that connects hotels, airlines, car rental companies, and travel
agents. It is primarily used by travel professionals to book travel services for their clients,
especially for corporate and business travel.

Examples of GDS Providers:

 Amadeus
 Sabre
 Travelport (Galileo, Worldspan)

How GDS Works:

1. Hotels input their inventory and rates into the GDS system, often through a central
reservation system (CRS) or PMS integration.
2. Travel agents access the GDS to book rooms for their clients, bundling them with flights
and car rentals if needed.
3. Once a booking is made, it flows back to the hotel’s PMS.
4. GDS charges a transaction fee for each booking rather than a percentage-based
commission.

Advantages of GDS:

 Preferred channel for corporate bookings and high-value clients.


 Reliable source of bulk bookings, especially for business travelers.
 Lower fees compared to OTAs.

Drawbacks of GDS:

 Less visibility to individual leisure travelers compared to OTAs.


 Higher setup costs for hotels to connect with the GDS.

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