PowerPoint Presentation 03/01/2014 1 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved1 Technology Strategies for the Hospitality Industry, 2nd[.]
03/01/2014 Global Distribution Systems and Channels Chapter Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved INTRODUCTION • The area of global distribution is one of the most complex aspects of the hospitality business and an area that has been greatly impacted by technology change with the rise of new channels or sales outlets – The term global distribution can be defined in this case as attaining the broadest possible reach to the largest available audience meeting a company’s target market segments at the most affordable cost and with the highest potential for winning conversion (i.e., generating bookings) Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 INTRODUCTION FIGURE 8-1 Common Channels Used When Booking Lodging Accommodations Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved Understanding Pathways to Customers Direct Intermediary Customer Hotel Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved INTRODUCTION • The thrusts of distribution are market reach and penetration, branding, merchandising, and revenue generation – Supporting the global distribution function is a global distribution system (GDS), that, in effect, has become the circulatory system of the lodging organization Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 INTRODUCTION FIGURE 8-2 The GDS Ecosystem Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 8 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 IMPORTANCE OF GDS • The roles played by a GDS have evolved over time—from one of transaction-based emphasis to one of strategic value—but at any one point in time, a GDS fulfills five important roles Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly FIGURE 8-3 The Many Roles of a GDS Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved IMPORTANCE OF GDS FIGURE 8-4 GDS-Related Core Competencies Essential for Competitive Advantage Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 10 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 DEVELOPING A DISTRIBUTION CHANNEL STRATEGY • Finding and Competing for Electronic Shelf Space • Cost Implications • Understanding Share of Distribution • Maintaining Inventory Control: A Daunting Challenge • Inadequate GDS Technology Infrastructure • Inventory and Rate Management Issues Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 11 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved DEVELOPING A DISTRIBUTION CHANNEL STRATEGY FIGURE 8-5 Distribution Channel Evaluation Criteria Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 12 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 DEVELOPING A DISTRIBUTION CHANNEL STRATEGY • Rise in Number of Electronic Intermediaries • Shift in Balance of Power from Supplier to Customer • New Models of Distribution and Pricing • Accelerated Rates of Change • Relinquished Control of the Customer Relationship Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 13 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 14 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved Agency Model 14 03/01/2014 Merchant Model 15 15 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved Opaque Model • Opaque Product • Opaque Price 16 16 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 Auctions 17 17 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 18 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved Search and Meta Search 18 03/01/2014 TRENDS IN HOTEL AND RESORT GDS • • • • • Disintermediation and Reintermediation Digital Divide Transparency: A Hope for the Future Bypassing Airline GDSs Leveraging Technology to Reduce Overhead • Mobile Apps (Applications) • Shopping Bots Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 19 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved M-Commerce Any time, anywhere access Location-based services SMS “push” capabilities Value-add services 20 20 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 10