the disparity of parity, by rahul pandit
DESCRIPTION
Rate parity is an ongoing struggle. With wholesalers incentivizing customers to search around for lower rates, rate parity becomes difficulty to maintain hoteliers and distributors need to put emphasis the consumerTRANSCRIPT
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
