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Welcome To Roomko: Changing The Way Consumers Book Hotel Rooms

OTA's charge hotels an average commission of 15-28% and GDS charge distribution fees of $8-$12 per transaction. This is a high cost business model for the hotel that prevents direct contact with the guest. RoomKo has created a unique no commission business model that breaks the traditional OTA booking process.

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RoomKo
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0% found this document useful (0 votes)
57 views

Welcome To Roomko: Changing The Way Consumers Book Hotel Rooms

OTA's charge hotels an average commission of 15-28% and GDS charge distribution fees of $8-$12 per transaction. This is a high cost business model for the hotel that prevents direct contact with the guest. RoomKo has created a unique no commission business model that breaks the traditional OTA booking process.

Uploaded by

RoomKo
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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RoomKo

ACCOMMODATION TONIGHT

Welcome to RoomKo
Changing The Way Consumers Book Hotel Rooms

2012 RoomKo CONFIDENTIAL

RoomKo
ACCOMMODATION TONIGHT

Industry Overview

Existing on-line reservations for hotels are predominantly handled through an intermediary booking engine such as Hotels.com, Expedia, Orbitz, Travelocity, Agoda etc. offering discounted rooms secured from hotels at deep discounts. There are currently over 600,000 hotels world-wide. Less than 30% sell rooms via the hospitality industrys Global Distribution System (GDS) and in turn, Online Travel Agents (OTAs) OTAs charge hotels an average commission of 15-28% and GDS charge distribution fees of $8-$12 per transaction. (Total average of 32% - 35% paid by the hotel.) OTAs demand an inventory allotment from the hotel often leaving the hotel short of rooms for a potential higher yield guest wishing to book direct.

2012 RoomKo CONFIDENTIAL

RoomKo
ACCOMMODATION TONIGHT

Industry Overview

Hotels are forced to rely too much on OTAs to fill their available inventory forcing the property into a lowest price war driving down their average room yield.

This is a high cost business model for the hotel that prevents direct contact with the guest and subsequently relinquishes the consumer relationship to the OTA.

Airlines have migrated their best available fares to their own site and hotels are slowly trending that way validating the message that consumers are seeking a path to direct bookings with the hotel.

New property development is soaring in Asia and the cost to market those properties through OTAs is costly and will demand commission and inventory.

2012 RoomKo CONFIDENTIAL

RoomKo
ACCOMMODATION TONIGHT

The RoomKo Difference

RoomKo has created a unique no commission business model that breaks the traditional OTA booking process where the consumer books directly with the hotel and in turn positions RoomKo as a valued partner to the hotel. RoomKo is not a travel agent or affiliated to any other travel organization, membership program or travel agency. RoomKo is free for consumers and will never charge a fee or a deposit as all bookings are made directly with the hotel. RoomKo is able to put the spotlight on hotels around the world and offers a robust solution for hotels wanting to expand their direct reach to consumers globally. Rates are supplied and maintained by the hotel and loaded by RoomKo . Bookings completed on the hotels own site guarantees consumers the best possible availability and price. Hotel information, contact details including direct property phone numbers and room rates give consumers a clear booking path.
2012 RoomKo CONFIDENTIAL

RoomKo
ACCOMMODATION TONIGHT

Lowering Transaction Fees For The Hotel

RoomKo Direct to Consumer Channel with Guest Booking Directly with the Hotel. Hotel Pays an Annual Listing Fee, No Commission and Bypasses Traditional Distribution Fees. RoomKo with Direct Hotel Contact Information. Rates Loaded by RoomKo and Maintained by the Hotel.

RoomKo Member, Consumer, Corporate Travel Planner & Web Savvy Clients

Hotel Website

Hotel Inventory
GDS PORTAL
Formats Data for OTAs (On-Line Travel Agents) & TAs (Travel Agents)

OTAs & TAs


Re-Brands in Own Style and Promotes to Potential Guests

SWITCH SITE
Aggregates Data From CRM and DMS Site and converts to GDS Portal

DMS SITE
Adds Content and Graphics

CRM SITE
(EG:Pegasus ) Aggregates Rates and Inventory From Hotels

THIRD PARTY HOSTING SITE

2012 RoomKo CONFIDENTIAL

High Cost Model With No Direct Contact With The Guest. OTA/GDS Model Costs The Hotel An Average of 32%-35% Commission with Transaction/Distribution Fees. 5

RoomKo
ACCOMMODATION TONIGHT

OTA Commission Examples

Hotel A has 18 Rooms with an occupancy of 50%, average rate $99


Annual Sales for the hotel, $353,215 or 3285 room nights sold yearly 25% generated by OTAs at 25% commission = $20,325 paid in OTA commission.

Hotel B has 200 Rooms with an occupancy of 65%, average rate $109
Annual Sales for the hotel $5,172,050 or 47,450 room nights sold yearly 50% generated by OTAs at 25% commission = $646,506 paid in OTA commission.

Hotel C has 400 Rooms with an occupancy rate of 72%, average rate $199
Annual Sales for the hotel $20,918,880 or 105,120 room nights sold yearly 35% generated by OTAs at 25% commission = $1,830,402 paid in OTA commission.

2012 RoomKo CONFIDENTIAL

RoomKo
ACCOMMODATION TONIGHT

The RoomKo Website Benefits

RoomKo offers hoteliers the window to showcase their own information direct to consumers including:
The flexibility to load rates based on their room types. The ability to customize their own packages. The ability to set amenities and features that apply directly to them. The ability to customize their description and add links to Facebook or any booking/review path of their choice. Provides the hotels direct rates and contact information. Each booking is completed directly on the hotels own site. RoomKo will never charge a consumer a fee or deposit. Each listed hotel can be searched by city, region, star rating, Airline Loyalty program, Hotel Loyalty program and Collection filter. The listing fee includes global exposure.
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2012 RoomKo CONFIDENTIAL

RoomKo
ACCOMMODATION TONIGHT

Who Will Use RoomKo

RoomKo will connect with over 17 million potential travelers globally on a monthly basis offering them a clear path to direct hotel bookings. Corporate Travel Planners from around the globe who want to Look & Book Direct. Delayed passengers seeking last minute hotel accommodation. Comparative shoppers who want to see local hotels and offers. Social Media advocates seeking a clear concise booking path direct with the hotel.

2012 RoomKo CONFIDENTIAL

RoomKo
ACCOMMODATION TONIGHT

Landing Page

2012 RoomKo CONFIDENTIAL

RoomKo
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City Specific Search

Direct Link

2012 RoomKo CONFIDENTIAL

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RoomKo
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Hotel Landing Page

2012 RoomKo CONFIDENTIAL

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RoomKo
ACCOMMODATION TONIGHT

Hotel Landing Page


Quick Links-Appear Below Full Listings

Direct Link

Direct Link

2012 RoomKo CONFIDENTIAL

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RoomKo
ACCOMMODATION TONIGHT

Hotel Landing Page


Image Library

2012 RoomKo CONFIDENTIAL

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RoomKo
ACCOMMODATION TONIGHT

Hotel Landing Page


Hotel Description

Direct Link

Direct Link
2012 RoomKo CONFIDENTIAL

Direct Link

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RoomKo
ACCOMMODATION TONIGHT

Hotel Landing Page


Email Hotel & Map

Direct Link

2012 RoomKo CONFIDENTIAL

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RoomKo
ACCOMMODATION TONIGHT

Hotel Landing Page


Hotel Amenities & Features

Over 500 Choices for Hotels

2012 RoomKo CONFIDENTIAL

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RoomKo
ACCOMMODATION TONIGHT

Hotel Landing Page


Search Options-Leading to Hotel Site

Search By Hotel Name

Search By Country

Search By City or Region

Search By Hotel Loyalty Program

Search By Star Rating

Search By Airline Loyalty Program

Search By Collection Filter

Over 40 Collection Filters

Search & Book Direct


2012 RoomKo CONFIDENTIAL

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RoomKo
ACCOMMODATION TONIGHT

Hotel
Updating Rates
Hotel Back End Password Protected

2012 RoomKo CONFIDENTIAL

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RoomKo
ACCOMMODATION TONIGHT

AccommodationTonight.com

AccommodationTonight.com

Accommodationtonight.com is a brand site with direct link to RoomKo.com


Hotels can offer rooms on demand and can upload daily rates that the channel partners/OTAs cannot get to market in time to satisfy 15% of room nights sold on same day check in. AccommodationTonight.com is an extension of the hotel web-site for commission free sales. RoomKo will foster current relationships with airlines for use with cancelled passenger hotel accommodation needs. Market to airlines, airports, corporate travel planners, travellers who seek quick direct access to Airport Hotels.

2012 RoomKo CONFIDENTIAL

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RoomKo
ACCOMMODATION TONIGHT

RoomKo Transaction Process

RoomKo will provide the hotel with terms and conditions for signature and return. RoomKo will invoice the hotel with the annual participation fee. Payment can be made by credit card, check or direct wire transfer. The hotel will be uploaded and in full production on the RoomKo site within 48 hours once payment has been received. The hotel will then be supplied with the quick reference set-up guide. Hotel will supply Room Types, Standard Room Rates & Packages if any, 12 Images, Main URL, Booking URL, Direct Contact Information, Social Media Details etc.

2012 RoomKo CONFIDENTIAL

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RoomKo
ACCOMMODATION TONIGHT

Owning the Client For The Hotel


Improving Cash Flow

RoomKo Member, Consumer, Corporate Travel Planner & Web Savvy Clients

Transaction Completed Directly with Hotel Consumers money, deposit, room guarantee resides with the Hotel Pre/Post Reservation

Hotel Site Hotel Inventory Hotel CMS Hotel Receivables

OTAs & TAs Booking via GDS Direct Connect

Transaction Completed with OTA Consumers money, deposit, room guarantee resides with the OTA Pre Reservation-Funds are transferred post check in

2012 RoomKo CONFIDENTIAL

OTA/GDS Model Costs The Hotel An Average of 32%-35% Commission with Transaction/Distribution Fees with the inherent issue of who owns the customer and delay in payment processing

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RoomKo
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Global Marketing

A sustained monthly marketing campaign direct to over 17 million travel savvy consumers will begin in the summer of 2012 in the following areas: North America: 7 million monthly Europe: 4 million monthly Asia: 6 million monthly

Continuous SEO marketing campaign putting RoomKo and its hotel partners in front of millions of potential travelers world-wide. Upon activation each property will be Tweeted and their editorial content will be included in the perpetual RoomKo Blog.

2012 RoomKo CONFIDENTIAL

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RoomKo
ACCOMMODATION TONIGHT

Hotel Participation Fees

Each hotel is required to pay an annual participation fee based on a sliding scale formula depending on the number of rooms with no additional hidden costs. The annual fee will vary by country as market conditions dictate. Sliding scale example is based on the US market and will be the same formula for each country depending on the established rate. Under 25 Rooms ...$299 26 to 100 Rooms....$499 101 to 200 Rooms..$599 200 Rooms and more$699

Discounts will be applied in extension of term i.e. two and three year pre paid contracts

2012 RoomKo CONFIDENTIAL

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RoomKo
ACCOMMODATION TONIGHT

RoomKo
Changing The Way Consumers Book Hotel Rooms Lowering The Distribution Cost for Hoteliers Globally

2012 RoomKo CONFIDENTIAL

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