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Balboa Travel & TripBam
TripBam
Why TripBam?
Technical Implementation
Considerations
Product Overview
Suggestions
Opportunity
Today at most TMCs, client hotel costs are increasing, commission revenues are flat or declining, and open or direct bookings are increasing. TripBam may:
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lower client hotel costs by as much as $60 per night through daily rate shopping. Fight lack of content perception.
increase agency revenues through fees and increased commissions
reduce “open” bookings by converting to TMC bookings (attachment)
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Step One: Like-For-Like (Agency Notification)
Savings found 5% of the time, average savings of $30 per night.
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Step Two: Same Hotel Only (Room Type Changes)
Savings found 15% of the time at the booked hotel, average savings of $40/ Nt
Step Three: Selective Clusters (Savings + Compliance + Commission)
Non-PreferredPreferred Cluster
Savings found 40% of the time, average savings of $50 per night.
Lower client costs and increased commissions.
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Step Four: Larger Clusters (Maximum Savings)
Savings found 50% of the time, average savings of $60 per night.
Cluster
The Money Matters
Hotel Booking - 2 Night Stay = $200
Commission= $40.00
New Booking = $150.00
Commission = $30.00
Commission Loss = ($10.00)
Percentage of non-commissionable hotels?
Percentage of commissionable hotels?
Meeting and VIP exclusions?
Incremental commission on net conversions= ?
What do you need to charge?
Hotel inventory is dynamic like airline
inventory. It changes by the second and has to be
monitored and worked quickly for best results.
Client – negotiated national hotel contracts
are typically a % off BAR.
Reporting – TripBam or In House
Communication – Travel/Admin/Finance
Strategy Solutions – Who will sell it and how? Client Relationship
Commission Gain & Loss
Pricing & Implementation
Support, 24/7?
Operational Structure – Agent or Team
Messy GDS Data – Messy On-line Tool Handling
Percentage of Nego. Hotels – Pegasus, Squatters
Meetings/GroupsVIPS - Exclusions
Major Items to Consider
Programming Challenges
Taxes and Fees/Calculating Total
Rate Changes During Stay
Currency Conversion
Inconsistent or missing GDS Information
Total Rate: $716.88
Base Rate Average: $309.00
Taxes: $98.88
Currency/GDS ChallengesTotal Stay Estimate: 2662000.00KRW
Subtract Taxes 462000.00KRW
Average Nightly Rate: 314285.71KRW= $288.79USD
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Agency Process: Back Office Feed or API
GDSX
$$$$$ $
$
$ $$
Like For Like
Corporate Client - Actual Results
KPIs Same Preferred Preferred+Bookings 714 714 714
Active Searches 558 558 558Total Start Cost $430,920 $430,920 $430,920Avg Cluster Size 1.00 3.65 10.68
Avg Nights 3.39 3.39 3.39Bookings w/Offer 75 232 418
Offer % 10.50% 32.49% 58.54%Savings Found $5,949 $32,475 $82,811
Avg Savings $79 $140 $198Total Savings % 1.38% 7.54% 19.22%
# Pref Props Offered 30 199 124# NP Pref Props Offered 45 33 294
% Pref Props Offered 40% 86% 30%
Received 714 bookings for a larger corporation. It was shopped for two weeks. Searched just the same hotel, clusters of just preferred hotels only, and clusters for both preferred hotels and preferred brands.
Best Practices
Policy
$25.00 minimum savings to make offer, same hotel or cluster
Auto – Accept same hotel room type changes
Well-defined client policy & implementation process
Hotel rate change the most a few days before arrival
Cluster Size
2 mile minimum unless compact area like Manhattan
Preferred to Preferred if company has over 50 preferred hotels in program
Direct client offers
Similar star rating
Reporting
Make sure to provide realized savings reports
Many offers will be declined due to traveler preference, bedding type, room amenity and simply ignoring the offers
Consider “open-booking” solutions to complete hotel controls
Get Paid YOU must charge!
