Forwardlooking of POS: Value added network VAN

1
Forward-looking of POS Value added
network (VAN)
Wholesaler
Bank
VAN Service Suppliers
Hotel / Restaurant POS System
Materials flow Supplier
Travel Agent
GDS
Customer Information Database
2
CRS Origins

• Airlines goal to control airline, car-rental and
  hotel reservations
• Goals of 500,000 terminals world-wide
• Maximum usage expected to be 80 of bookings

3
First Hotel CRSsProductivity enhancement

• Holiday Inn 1965 transformation from small
  budget to world leader
• Radisson CRSs delivered up to 43 of revenue U.S.
  market
• Equalizes marketing capability of small and large
  hoteliers
• ASP means no massive investments
• Exponential developments/upgrading CRS

4
Typical CRS layout
5
Top systems

• Can be utilized as business drivers
• Voyager 4.0 documensts 30 labor savings
• ASP CRSs instantaneous changes distribution
  network for last room and yield planning
• Proprietary systems for larger hotels chains
• Similar features

6
Switches

• THISCO
• Wizcom
• UltraSwitch
• Carlson switch implements 5 jump in bookings
• Wizcom new cache technology overload buffer

7
New Paradigm Developing

• Direct connect to PMS through Switches
• 180,000 hotels not connected to GDSCRS market
• Data mining opportunitiesCRMdecreasing labor
  and communications.
• CRS/PMS unification, disintermediation via XML
  technology

8
Examples of disintermediation

• Caribbean Hotel Association implemented a CRS for
  entire region.
• Netherlands, Austria have CRSs
• Destination Paris CRS for 1200 properties

9
Flexibility and the future

• Movement toward mass customization of content for
  marketing
• Realtime connectivity
• Muller-Elmau, 2006-founder of Pegasus
• says driving force connecting to the world and
  elimination of intermediaries.
• Standard transaction formats forced on industry
• Small chains no longer a technological
  disadvantage

10
.com Examples

• Owned by Sabre GDS
• First .com booking tool launched in 1996
• Rated number 1 by top9.com

11

• Bidding Site
• Blind Site
• Deeply discounted
• Lower profit margins

12

• Created by Microsoft
• Rated number 2 by top9.com
• Site finds lowest price with current vendors

13
Evolution

• Issues with inventory balancing
• Communicated via fax machines
• Poor customer perception, room types were not
  guaranteed i.e. preferences
• Now rooms are guaranteed
• Synchronizes with yield management systems
• Real time view of room inventories

14
Future

• Growth is expected
• Hoteliers will continue to use these .coms
• Open Travel Alliance Standard (OTA)
• OTA needs more travel industry support to be
  successful