Global Reservations Technologies Chapter 5 Global Reservations Technologies

Global Distribution Travel agents were the first step in the development of today’s global distribution system. Global distribution brought 3 things: -Seamless Connectivity -Last room Availability -Electronic Switch Technology Seamless Connectivity- LRA- Electronic Switch Technology-

Application Service Providers Single Image Inventory- inventory prices available to all users, even negotiated rates. Single Image- One inventory-price and availability- are viewed by the GDS, CRO, and Internet-based distribution systems. The result is lower error rate in reservations bookings and a resulting improvement in overall customer service. Difference from LRA is that LRA using PMS systems for its information.

Traditional Reservation Channels The Changing Role of the Travel Agent- more people are booking their own stays via the internet. Travel agents were once paid an uncapped 10% commission, airline companies have since capped the earnings at $20. Travel Agents National Day of Awareness, August 30, 2001- prior to 9/11. Increased operating costs have squeezed airline profitability.

The Hotel-Travel Agent Relationship- Hotels still pay a 10% commission. Unlikely to change. Travel agent bookings account for 15% of all hotel rooms booked. Travel agents argue that hoteliers are slow in paying commissions and they are often inaccurate.

Central Reservations Centers Call centers- a large office with employees taking calls for a specific brand of hotel. Most have been outsourced in recent years. In-house reservations- Employees at the hotel making reservations for that hotel only. Web-based reservations- Reservations booked online by the traveler, these have become the most popular in recent years.