Elmer Copoolse Ceo, Hotel Collection International
Bill Geoghegan, consultant
Forces driving CRS
© DigitalVision
Internet does not mean the end of the GDS - traditional booking sources will continue
to exist - but it has brought a number of new booking sources
w Portals (eg.Yahoo, Excite)
w Travel sites (eg.Expedia, Travelocity)
w Affinity sites based on specific interests
w Direct-to-hotel booking via own websites
Other influences included in new technology
w The need for e-communication with the guest
w The need for full communication with the PMS
w The need for customer information/data warehousing for
targeted marketing
w New standard initiatives eg Open Travel Alliance
consortium, that has communication standard for the entire trip
w Existing investment in systems
w The competition for capital investment within the hotel
(upgrading furniture, wiring etc.)
Elmer Copoolse Ceo, Hotel Collection
International
The main challenge for smaller hotels is: How to position ourselves as hoteliers with a
vision to master the internet and integrate it in our existing systems. Few of us have the
CRS capability to support this new distribution channel. It's the start of a revolution
the network revolution.
Until the late 90's, there were a multitude of technology applications. GDS, CRS, PMS,
that were not internet compatible, and expensive. The only way CRS system could provide
full functionality was to be web based. Hotel Collection International was founded to
deliver management services based on this network technology using e-principles, to
offer independent hotels a global low-cost solution to sales, reservations and CRM and
allow hoteliers to reclaim control of distribution channels. Their three New York
properties were used to beta-test a system designed by Synexus.
When selecting a CRS the hotelier is looking to:
w Increase revenue and profitability
w Build loyal customer relationships
w Lower costs capital and operational
w Eliminate upgrade fees
w Pay by transaction (fixed fee, not %)
w Reduce software license fees and hardware cost
w Support a non branded GDS connectivity
w Have seamless, single point inventory control - real time
booking information
w Single image shown to all booking sources
w Provide instant reservation confirmation
w Choose a system that's easy to use and train
Synexus offered a custom made solution Synexis Agent
Features
w Synexus operates as an application service provider (APS)
not an internet channel it's an application that resides on a server that is
proprietary to a hotel for their portion of the inventory.
w It created a web-based hotel reservation system which
maintains a single, real time representation of property inventory access by all booking
sources and alternative distribution systems.
w It provides a central reservation solution, a connectivity
solution and 'Bookares'. The CRS part allows you to be connected to internet channels,
your own hotel source, voice bookings and GDS bookings.
w It contains guest history capability, data warehousing
component, integrates with any PMS, and allows pricing that is transaction based (fixed)
and to start up without capital costs.
w Connectivity solution is seamless with the GDS and allows
you to update your rates in all channels.
w Bookares is a button on your website, and elsewhere, that
allows direct online booking with instant confirmation and allows you to offer varied
rates and packages.
It's time for hoteliers to develop their own CRS strategy. The internet revolution offers
the same advantages as the 'big guys'. Smaller hotels are better positioned to take the
lead than ever, as they are not hampered by investments, etc In the past, they couldn't
afford the CRS. This system solves all their problems. In a browser environment, a hotel
can have great functionality, but at lower cost. As society accepts the internet, the
middlemen go by the wayside. Going direct via internet is here and it will get more
streamlined. Web based application allows freedom to adapt quickly without the burden of
new investments or software changes.
Bill Geoghegan, consultant
Virtually every CRS has voice centre capabilities but a network application service may
allow each of the hotel reservation departments to become the reservation centre, ie. a
virtual voice centre, networked through the internet.
We not only have to deal with GDS, reservations are coming from many different sources
on the web.
w Through alternative distribution sources like WorldRes,
Priceline, Travelweb.
w Expedia/Travelocity - web originated reservations.
w The next new portal wanting to be put up your hotel but
on a wholesale basis.
w Through the 'holy grail' of the web as a whole
reservations made directly by the guest, ending up in your PMS without any costs or
commissions (bar the infrastructure).
w Hotelguide, Travelocity, Expedia etc. are just the front
end to the GDS. They book like travel agents so you have to pay a commission charge.
You must be in the GDS. Either via a rep company or via a brand, or Synexis, or
WorldRes.com. I feel you should have a single source for inventory and booking to the
e-world, giving allotments will doom you. If CRS and PMS are both web-based, you can
operate a true single image inventory.
CRS and PMS integration is very important. My feeling is that one side or other should
house a single image in a browser environment. For example, Marriott has succeeded in this
by having the pricing only on the CRS. You need to be able to communicate all transactions
in real time. (HITIS is working toward this)
What does your CRS know about the reservation?
w Does it know where it came from? How much did it cost?
Does your system allow you to vary availability and price based on the channel through
which it came and the booker (the YM principle). This will be an important future
requirement of CRS.
w From the hotel perspective, how does the CRS help you to
market your hotel? Does it have data warehousing, one to one marketing, include YM as part
of its capability?
w How do you position yourself? Do you consider your hotel
room a commodity? Do you simply want to get it sold? You therefore need CRS to communicate
regularly with wholesalers and discover what percentages of rooms are sold.
w If you are groups/meetings oriented, how do you allow
Businessmeetings.com etc to find your hotel to book it, on an individual basis.
Who can you choose from to be your CRS provider?
w In-house equipment and software (licenses, train staff,
manage hardware) eg. RezSolutions, HSI, HES, Fidelio
w Outsourced technology (CRS that you run, but the
technology/software is offsite and you pay on transactional basis) eg. Wizdom Plus,
RezSolutions, Trust
w Web-based applications service providers eg. Synexis,
WebCRS
Internet infrastructure will ease new inventions. This year in the European market internet connectivity is now accessible in terms of cost, full time ADSL is within reach. Make sure you are connected. A large CRS system may make more sense because it is cheaper to make capital investment and run it than to pay transaction fees. If you are smaller, it may be more logical to outsource the infrastructure.
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L'HÔTELLERIE Eurhotec Special Issue 8 February 2001
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