Optimizing The System
New modules on central reservations systems allow for streamlined operations.
By Rebecca Oliva, Technology Editor -- Hotels, 6/30/2003 11:00:00 PM
In the ever-changing world of channel management and rate distribution, hoteliers rely on sophisticated central reservations systems (CRSs) to help handle potential inconsistencies in rates. In the past few months, many CRS vendors have introduced new features designed to alleviate challenges with rate distribution, inventory reporting and even revenue management. The new software can improve channel management and increase booking opportunities by putting hotels in control of their own rates.
“The key is to allow the hotels to have more control over rates and the avenues in which those rates are being distributed,” says Barbara Miyao, manager of global distribution, Nikko Hotels International, which is operated by JAL Hotels Company, Tokyo. Nikko recently renewed its agreement with Pegasus Solutions, Dallas, for its RezView CRS. The new version 4.2 includes modules that allow hotels to better manage their rate distribution and availability options. “It is really great for the industry because hotels are going to get a more accurate view of what is happening with their distribution channels,” she says.
And while these new CRS features are incremental improvements, experts say they are just the beginning toward reaching a complete solution to channel distribution. “The new features are useful improvements in an area of both importance and pain for hoteliers,” says John Burns, president, Hospitality Technology Consulting, Scottsdale, Arizona. “The fact that vendors are responding to hoteliers’ needs is a step in the right direction.”
New Features, New Business
Part of Nikko Hotels’ decision to renew with Pegasus was based on the enhancements made to RezView, which Miyao says will allow properties to distribute their Internet rates more effectively. The upgrades include seamless rate plan filtering; seamless full rate disclosure; rate change detail in availability responses; and the shopping engine for increased efficiency. All of these features are designed to streamline the online reservation process and help hotels maximize their rate distribution.
In particular, Miyao says the seamless full rate disclosure module, which displays rates for each night requested, will help bolster the “look-to-book ratio.” The feature increases the chances of bookings because it ensures that all rates are distributed equally to all Web sites. “When the CRS sends out those rates there are literally thousands of different Internet sites that are picking them up, and how they read those rates is so important,” Miyao says. “What the full rate disclosure does is assist the hotels in doing better revenue management, where they can actually pinpoint the rate and distribute it to specific channels.”
Accompanying the improved rate distribution is Pegasus’ shopping engine, designed to lessen the burden that online travel agencies place on hotels’ CRSs with an advanced rate and availability engine. Miyao says this feature enables Web sites to consolidate multiple room availability requests into one streamlined transaction, reducing the load on both Web sites and hotels’ CRSs. By doing so, it also relieves the hotel’s infrastructure by using only the minimum data needed to process availability needs. “This technology has really brought CRSs up-to-date,” Miyao says.
With these features Miyao says Nikko properties will realize an increase in bookings within the first year without changing the way they operate. “The system will be seamless at an operations level,” she says. “Properties will start to see changes in productivity and occupancy.”
Organization Is Key
Still, the ability to easily organize and update room availability, hotel information and rates is crucial to staying competitive in each of the distribution channels. Lexington Services, Irving, Texas, recently rolled out the LexLink Online yield management tool, a new addition to its reservations services package. The feature provides hotels with online access to the Lexington Services system, allowing them to better manage inventory, download reservations and receive up-to-the-minute information on guest arrivals.
Palazzo Versace, Gold Coast, Queensland, Australia, installed the LexLink Online system in May to help better manage its distribution. With the system, the hotel can change rates on any existing room/rate combinations and make changes to its availability by using the inventory control system. Since LexLink is Web-enabled, the hotel has access to all of the major distribution channels, and the Internet connection not only allows Palazzo Versace to manage its reservations efficiently, but also provides it with e-mail capabilities to accept reservations for free.
Under the agreement, Lexington provides centrally hosted reservations technology, support and exposure through the GDSs and Internet Distribution Systems via Lexington’s Online Distribution Network. The hotel expects to strengthen its visibility among international travel agents and to build brand awareness worldwide using the system.
Control Your Own Destiny
While new features enhance the booking capabilities of CRSs, so does the ability to control the system at the corporate level. When Prime Hospitality, Fairfield, New Jersey, rolled out its proprietary Prime Hotels & Resort brand in January, the new branch warranted a change in the company’s reservation system. Prime Hospitality was operating an application server provider (ASP)-based system that didn’t allow for much control of rate distribution or reporting of rate and booking trends. “It made sense to control our own destiny to report information and lower our costs,” says DJ Vallauri, vice president of e-commerce for Prime Hospitality.
Within 18 months, Prime Hospitality realized the value of controlling their own CRS and, thus, their rate distribution when it installed Norwalk, Connecticut-based Hotel Data System’s (HDS) xenonCRS Enterprise. Since Prime licenses the technology, the control is in its own hands, and Vallauri estimates saving US$1.5 million per year. The solution centralizes a majority of the CRS functionality at Prime’s corporate office. Many of the reservation operations that were conducted by third-party companies, such as connections to the GDSs, are done now by Prime, eliminating the need for costly intermediaries. “By operating our own system we can see which channel is receiving which rate and make sure we maximize our distribution,” Vallauri says.
The system allows Prime’s management team to control and retrieve information based on the source of business, Vallauri says. Specifically, as reservation data is requested at any point of sale, individual or multiple criteria such as rate, length of stay, room type, source of business or percent of occupancy can be prioritized. “It gives us a lot of flexibility as far as managing and tracking information in certain accounts,” he says.
Prime also has the advantage of manipulating the modules to fit its needs. Now that the company operates a variety of brand types, certain modules work better for certain brands. For example, Prime uses the packages module, which allows reservation agents to create packages instantaneously, for its Prime Hotels & Resorts brand only. By customizing the CRS system, Vallauri says Prime can operate each brand more efficiently.
The xenonCRS enterprise maintains a single, real-time database environment and can be accessed through all distribution channels— GDS, voice, property and the Web. Each property has a two-way interface between the CRS and property management system (PMS). The integrated CRS/PMS solution is based on XML technology and, therefore, it maintains reservations and inventory seamlessly.
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