Is the GDS Right for You?

Josh Wise

VP Business Development

About RezStream

• Established in 2005• Located in Denver, Colorado• 21 Employees

WHO WE ARE

• Software and Internet Services • Independent Properties Only• 100 Rooms or Less

WHAT WE DO

• Founders of RezStream Set the Tone• Hire Passionate Professionals• Education

WHY WE DO IT

About Me

• Married 5 years, Together for 19• 4 Year Old Daughter• Born and Raised in Denver• Sports Enthusiast • 5 Years at RezStream• Oversee Sales, Marketing and Support• Addicted to Ping Pong• Love Helping People

Josh Wise

Today’s Agenda

1. What is GDS2. How can GDS benefit you3. OTA options4. FAQ5. Promotional Offer6. Process for signing up

Glossary

Global Distribution SystemDefinition: The Global Distribution System, known simply as GDS, was first created by the airline industry for managing flight reservation data but has since grown to 4 major companies; Worldspan, Amadeus, Galileo, and Sabre, and include inventory for flight, hotels, and car rentals. The GDS is accessed by traditional travel agents and online travel agents (OTAs), airlines, hotels, and car rentals companies.

• For lodging properties, the GDS was initially geared towards hotels and motels featuring a large amount of inventory. Since then, several changes have enabled smaller properties featuring lower inventory the opportunity to participate.

1. What is the GDS

What is an Online Travel Agent

Definition: An online travel agent (OTA) specializes in offering planning sources and booking capabilities.

Major OTAs include: • Expedia • Travelocity• Priceline• Orbitz• Booking.com

Stats: Expedia works with 45,000 lodging properties. Travelocity works with 55,000 hotels. Booking.com offers 268,000 places to stay in 179 countries.

1. What is the GDS

Benefits for Your Property

Get listed on hundreds of leading online travel sites Reach 600,000 travel agents Increase your online exposure, driving traffic to your website Potential for revenue increase Take advantage of OTAs marketing efforts List your room availability Help fill mid-week vacancy Two-way integration with many leading property management systems

2. Benefits

Is My Property a Good Fit for GDS?

B+B’s, Inn’s, Hotels, Motels, Vacation Rental, Property Management Desirable location Less than 100% occupancy Your marketing efforts don’t include SEO and/or PPC You offer room types or individual units Interested in gaining new customers

• GDS offers up to 16 room types • You can add an addition cluster (16 types) for an added fee

2. Benefits

How to get listed with OTAs: Merchant Agreement

Merchant Agreement: Direct agreement with travel website (Expedia, Booking.com)

o Cost - Between 15-25% per bookingo Quality listing placemento Located in a secondary market to a major

cityo Advanced listing featureso Requires a separate agreement for each

travel websiteo Travel website collects payment from the

guest, then pays you

3. OTA Options

How to get Listed with OTAs: GDS Agreement

GDS Agreement: Through a 3rd party company (InnLink, Sabre)o Cost: 10% per bookingo Typically listed below merchant agreement properties (exceptions to the

rule)o Basic listing o Sign one agreement to get listed on hundreds of travel sites and 600,000

travel agentso Travel sources sends you the credit card info, you process the paymento You can still have Merchant agreements

3. OTA Options

What does a PMS Vendor have to do with all this?

• PMS vendors provide the connection from their reservation software to GDS providers

• Fees: Range from $15.50 - $17.50 per GDS booking

• Vendors will get you lower fees than you can get yourself with GDS providers

• Not having a vendor requires manual data entry of bookings and availability

3. OTA Options

Differences in Fee Structures

Merchant Fees - 15%-25% Retail Fees – 10% + $17.501 Night $15-$25 $27.50

*2 Night $30-$50 $37.50 *3 Night $45-$75 $47.504 Night $60-$100 $57.505 Night $75-$125 $67.50

4. FAQ

Assume each room night is $100

Frequently Asked Questions4. FAQ

• Can I manage my own inventory?• YES!

• Can I set minimum night stay requirements?• YES!

• What is the turnaround time upon signup?• 2-4 weeks on average

• What are factors that control my placement on the travel websites?• Expedia: Conversions, Page views, Reviews (Quality/Quantity), Relevance to location

• How do I get better placement on OTAs?• Sign up for merchant agreements

RezStream GDS Costs5. Promotion

•One-Time Signup Fee: $750 (Includes the first year of support)•Commission: 10% paid directly to each travel source (OTA or travel agent)•Flat Fee: $17.50 (Split between InnLink and RezStream)

Promotional Offer

Now through May 31st, 2014Setup Fee is $50

I’m Interested… What’s Next?

1. Determine if the retail route is best for you2. Select a vendor that provides this service and the two way connection to your

PMS3. Sign the GDS agreement4. The setup process ranges from 2-4 weeks on average, training is included5. Your responsible for setting up your property information in most cases

a. Rooms/Rates/Taxesb. Room Descriptionsc. Picturesd. Policies

6. Sign Up Steps

Thank you for your time. We appreciate the opportunity to share insight related to the Global Distribution System.

Reach Us

Phone: 866-360-8210 x1Email: josh.wise@rezstream.com

www.rezstream.com