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Study: room rates 6.5% higher for reservations booked from hotel sites

VIP International Corporation, the channel marketing provider, yesterday announced it is responding to a recent hospitality study showing…

VIP International Corporation, the channel marketing provider, yesterday announced it is responding to a recent hospitality study showing property websites generate 6.25 percent higher average reservation rates at the lowest cost per reservation, by adding a suite of Website Services to funnel more business to clients` Internet sites. VIP`s new Website Services will include site design and Search Engine Optimization to give properties the ability to book more business over their most profitable reservation channel, their hotel`s site.

Hotel Websites Drive Higher Rates – A study of forty leading hotels conducted from January through October 2003, comparing reservation rates booked through third-party channels versus property-controlled websites, showed 90 percent of properties generated rates significantly higher than those from non-property-based channels. In the past two years hotels have seen Internet-based reservations skyrocket, said ,Kelly Blake, President of VIP International. Our recent booking study of high-volume properties made a strong business case for hotels becoming more Web-centric. The survey reveals that hotel-site rates are often 15 percent above those of any other electronic channel. Almost all channels like Expedia, Orbitz, and consortia provide negotiated rates. Rooms sold through GDSes are assessed GDS charges and often carry a travel agent fee as well; together these fees can total 18 percent of the room rate. Because a property`s website has the potential to bring in the highest rates at the lowest cost per reservation VIP International is launching a new suite of Website Services designed to maximize the traffic to clients` booking sites. VIP is partnering with SECURE-RES, a leading edge Internet specialist, to provide the most advanced search engine optimization and website design services to its clients.

For more than two years VIP International has supplied hotels with Book-A-Res, its website booking engine that allows guests to reserve hotel rooms in real-time directly on the property`s website. Now, with VIP`s new Website Services package, it is providing hotels the ability to drive as much reservation business as possible through their own sites. A hotel can expect an effective website marketing program to generate 25 to 30% of its electronic bookings. Given the fact that the hotel`s website is its least expensive sales channel, the hotel will produce its greatest profit from these direct sales compared to the alternate channels. The majority of our current 800 plus hotel clients have seen consistent growth in sales from their websites. This growth is a direct result of our enhanced site design, search engine optimization, pay-per-click advertising and the hotel having the ability to adjust rates and availability instantly. We look forward to delivering comparable success to the VIP hotel clients, said Joe Hyman, President of SECURE-RES. Mr. Hyman added, We expect our partnership with VIP to bring a new level of sales success to their hotel clients.

VIP International has a responsibility to deliver the highest rates and greatest reservation reach across all channels for its clients, but ultimately a property`s website is the only channel they control completely, explained VIP President, Kelly Blake. They decide the rate, the branding strategy, and how they market amenities. We are giving hotels the option of making their website the focal point for new reservations. Our new Website Services package will drive retail-rate reservations to hotel sites to create brand loyalty and higher rates.

Theodore Koumelis
Co-Founder & Managing Director - Travel Media Applications | Website

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.