the disparity of parity, by rahul pandit

Travel Distribution Summit Asia 2010

The Disparity Of Parity

April 29, 2010Marina Mandarin, Singapore

www.lemontreehotels.com

The Lemon Tree Hotel Company

• Lemon Tree Hotels: India’s fastest growing, upscale, full service, moderately priced hotel chain

• Red Fox Hotels: Economy hotel brand

• Happy Shrimp Hospitality: Restaurant chain

That government is the best which governs the least.

Henry David Thoreau

Travel Market

FuturePast Present

Customers

Suppliers

Retailers

Hotels contribute a little over 30% of OTA total

gross booking volumes but more than 60% of

OTA commission/booking fees!

Source: HeBS

Trade Disparity

Typical commission structure

• Airlines: 0%-4%

• Car rental companies: 0%-10%

• Cruise liners: 7%-15%

• Hotels: 25%-30%

Reasons For Disparity

• Ignorance

• Fragmented markets

• Anomaly in technology

• Short term market focus

Synergistic Partnership

Demand

Com

mis

sio

n

Social networks can be incredibly useful in consumer retail.

Chris R. Hughes

Co-founder, Facebook

Opportunity

• Selling experience, not a commodity

• Leveraging social networks

• Integrated booking engines

Travel Market

Customers

Suppliers

Retailers

Dependence Independence Interdependence

Build Trust: Build Relationships

Build Trust: Build Relationships

www.lemontreehotels.com

rahul.pandit@lemontreehotels.com

Thank You