Online Contracting ~ Hotel’s Contemporary Paradigm

By the end of 2006, over 27% of all bookings will have been made via the Internet, according to the experts at PhoCus Wright. With travel agents remaining as the ultimate distributor; online contracting indeed continues to offer great flexibility to both hotels and travel agents, compared to paper contracts.

Thus, hotels should consider changing the paradigm of the way they do business, into a wholehearted online dedication.

The fact of maintaining paper contracts for a hotel implies:

1. There are numerous travel agent contracts to be filed away and maintained. Every contract has different rates and allotments, different due dates, and its own potential of special agreement. To compile all this paper information into one report has perpetually been time-consuming.

2. Rates and allotments are agreed in advance, based on contracts (6months to 1 year). A hotel cannot sell the allotment until the cut-off day is due. In case there is any change of rates, the hotel has to inform each of its travel agents of this matter.

3. Since there is such a profusion of travel agents, a hotel tends to pay selective attention to several productive travel agents who are more likely to become wholesalers. Apart from that, unproductive travel agents are welcome to make reservations through productive travel agents. Now, is it true that the productive travel agents produce rooms as much as the unproductive ones do? A hotel can never be sure.

Online contracting, introduced by Pelican Reservation Management System, brings a solution, addressing these problems. Once a hotel makes use of Pelican Reservation Management System, every travel agent can contact the hotel directly through the hotel's website, and can request access.

Once the hotel appraises the travel agent, a login name and password will be issued. Any time travel agents would like to check rates and room availability, they only have to go to the Hotel's website for direct access. A hotel can adjust room rates and allotments at any time, and distribute these to every travel agent. To view the latest room rates and availability, travel agents can simply log in with their ID and password (approved by the hotel). No more fax or phone calls to be made, because this is all accomplished online through the Hotel's website. Travel agent will have direct access to hotel room rates, and having instant confirmation and an automated payment facility accessible any time, 24/7!!

Instant confirmation on a 'first come-first served' basis allows the hotel to monitor reservations more accurately. Pelican features several reports to help the hotelier monitor their market. For instance, a travel agent's productivity report, which breaks down every travel agent's activities. The following is the way an Agent Production Report from Pelican System works.

Switching from paper to online contracting is simply a matter of time. The Internet is steadily growing in popularity. Catch the momentum now, adopt a better way to do your business and don't be late in seizing potential revenue.