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Please email all forms and agreements to my attention and CC your implementation manager.
What is GDS? A network operated by a company that enables automated transactions between vendors and booking agents in order to provision travel related services to the end consumers. A GDS can link services, rates and bookings consolidating products and services across all three travel sectors: i.e. Airline reservations, Hotel reservations, Car rentals, and Activities. The premier global distribution systems are Pegasus, Amadeus, Galileo, Sabre, and Worldspan and are owned and operated as joint ventures by major airlines, car rental companies, and hotel groups.
There are three ways for hotels to sell rooms on the GDS and Online Travel Agencies (OTAs):
I.RETAIL (traditional Travel Agent booking): rooms are sold through all channels connected through the GDS, without prejudice. The selling agent, who must provide a validIATA code (a unique identification number for every travel agent), earns 10% commission (10% is standard but may vary) on the associated room charges. The guest pays the hotel directly based on the hotel’s policy, and then the hotel pays commissions to the travel agency - on the “honor system” - that are due after the guest checks out. innCenter can track commissions due, however, the hotel is ultimately responsible for and needs to make payment to the travel agency. Typically, the OTA provides little or no information to the hotel about the guest, other than the guest’s name. If your property is set up on GDS, without completing any Merchant agreements, all reservations will be Retail.
II.MERCHANT (Net Rate booking): the hotelier provides a Net Rate (Best Available Rate or Rack minus agreed upon commission) to Merchant. The Merchant sells the rooms at BAR to the guest and collects payment at time of booking. The hotelier then either bills the OTA or collects Net rate from the Merchant upon arrival of the guest by charging a single use virtual credit card provided by the Merchant. With the exception of Expedia andBooking.com, the OTA provides little or no information to the hotel about the guest, other than the guest’s name.A hotel will only receive Merchant reservations after completing and submitting the merchant agreements. Once the property has a merchant agreement, they may still receive Retail (non-merchant) bookings from the GDS channels.
III.OPAQUE (undisclosed property name until after booking): the property provides several rates (typically 25-45% less than retail) and rooms are sold based either on bids placed by guests without knowing the actual property name (Priceline) or discounted rates search on Hotwire. The guest either bids based on the location and star rating and/or on a general search and the property name is disclosed after guest wins the bid or books the reservation. A property with an Opaque agreement can also receive Merchant and Retail bookings.
Although the property will list on variousOTAs via GDS as RETAIL,no OTA guarantees listing without a merchant agreement. The benefits of selling rooms via MERCHANT in return for the additional commission fees are that:
- Hotels with Merchant Net Rate Agreement receive preferential and higher placing on theOTA’s website whereas the Hotels are deemphasized when publishing rates via the RETAIL model. For instance, on Expedia, retail hotels typically show at the end of the list and do not display an image on the main listing. On Travelocity, an image is displayed, but room rates are hidden on the main page during guest search.
- Hotels are paid directly by the OTA; no need for credit card verification or collecting from the guest
- Guest contact information is provided
- Hotels have better access to customer support
- Option available to offer promotions
In all cases there are per reservation fees, whether the room is sold via RETAIL, MERCHANT or OPAQUE models. The following are fees related to GDS and reservations:
GDS setup fee:
$300 onetime fee for set up
Third Party Distribution:
Pegasus Channel: $10 per month per property
Pegasus GDS (all bookings via Pegasus channel): $10 per reservation
All other GDS reservations: $12 per reservation
Hotwire (via GDS channels): $12 per reservation
Priceline Merchant or Opaque: $12 per reservation
Direct Connect OTAs:
Booking.com: $4 per reservation
Expedia QC Reservations: $4 per reservation
Orbitz: $4 per reservation
Travelocity: $4 per reservation
Travel Agent commissions:
10% customary commission (% set by the client and paid directly to the travel agency)
If you decide to participate in the GDS Merchant Net Rate Program, please complete the attached Hotwire and Priceline documents and return to innRoad. For Expedia, Booking.com and Orbitz merchant participation, registration and contract must be in place with the Ota directly before interface is established with innRoad. See specific details below for each OTA.
Expedia Quick Connect (EQC) allows the property to integrate their innCenter directly with the Expedia Extranet Account. That is, all availability, restrictions, pricing flow from innRoad directly to Expedia and all reservations come back directly to innRoad.
To participate in an Expedia program, go to (https://joinexpedia.com/). After registering your property, an Expedia market manager will contact you to initiate contact discussion. You must first negotiate and sign an agreement with Expedia directly to join the program. Please consider the different inventory options (i.e., Base Allotment, Free Sell or Flexible Inventory) before entering into agreement with Expedia as this selection can impact inventory flow between Expedia and innCenter with the potential to create discrepancies that can lead to overbooking. Once an agreement is in place, an EQC enrollment form (also attached) is completed and sent to an innRoad GDS specialist in order to connect innCenter to your Expedia Extranet account.
For general information or to speak to your Market Manager:
Phone: 1-855-783-9733 option 6
We do not facilitate theBooking.comagreements directly. Please joinBooking.comat www.signupwithbooking.com The property must first sign an agreement withBooking.comdirectly to join the program. Then theBooking.comAccount Manager must be advised the property will interface with innRoad. Please consider the different inventory options (i.e., Contracted Rooms to Sell, Free Sell) before entering into agreement withBooking.comas this selection can impact inventory flow betweenBooking.com and innCenter with the potential to create discrepancies that can lead to overbooking.
If you already have aBooking.comaccount, kindly reach out to your Account Manager and advise you are interested in direct connect with innRoad XML provider # 330.
Properties that want to sign a new Orbitz agreement can follow this link: https://www.owwsp.com/.
They should click ‘Become an Orbitz Worldwide partner’
From the next screen they have two options:
1. Click on the ‘Become a partner’ button at the bottom of the page
- Complete the online form with their contact details
- This will be passed to the appropriate market manager who will get in touch with them.
2. Click the ‘Who is my market manager’ link on the left.
- This will take them to a screen where they can enter their location details in order to see the name and email address of their market manager
Once a contract is in place, advise your market manager of interest to direct connect with innRoad XML.
Please note below the amount of time it could take from the moment of submission for each OTA listing to appear on the GDS as Merchant Net Rates.
Booking.com -If a Booking.com extranet account already exists, the property can be interfaced within 7 business days. If a new contract is required, theBooking.comteam will work with the hotel or hotel rep to set the property up in the extranet. Once the property is built in extranet, interface with innRoad can take up to 7 days. Based on this, the timeline can be 2 – 4 weeks.
Expedia - If an Expedia extranet account already exists, the property can be interfaced within 7 business days. If a new contract is required, the Expedia market manager will work with the hotel or hotel rep to set the property up in the extranet. Once the property is built in extranet, interface with innRoad can take up to 7 days. Based on this, the timeline can be 2 – 4 weeks
Please note that (at the time Travelocity is not accepting new applications, due to a merger with Expedia)
Please let us know if you have any questions and if you’d like to setup a call to go over more details and assist you with the forms.
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