Download - 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
