Hotel Group Cuts Reservation Costs by 50% and Increases Online Revenue by 30% via SiteMinder
As accommodation providers worldwide cut costs to protect thinning margins in a challenging market, one hotel chain in Asia has slashed more than 50 per cent off its costs through commission savings in less than two years after partnering with online distributor, SiteMinder.
Malaysia’s premium-rated Avillion Hotel Group also saw revenue rise 30 per cent in the same period after adopting SiteMinder’s cost effective distribution platforms.
Avillion achieved the sizeable savings and revenue increase after adopting SiteMinder’s flat-fee Channel Manager in 2010 to connect its luxury hotels and resorts – Avillion Admiral Cove, Avillion Port Dickson and Avillion Legacy Melaka – to booking websites around the world. In 2011, Avillion also switched the booking systems on its own websites from the previous commission-based model to TheBookingButton- SiteMinder’s commission-free booking engine which allows travellers to book direct via the three hotels’ own websites.
Avillion’s growing Private Collection portfolio, comprising exclusive homes and villas in Malaysia and Japan, also uses TheBookingButton to power its direct bookings.
Business, Marketing and Sales Director for the Avillion Hotel Group, Ms Helen Tan, said SiteMinder’s two distribution solutions – TheBookingButton and Channel Manager – had helped Avillion achieve average cost savings of more than 50 per cent across its properties, compared to the previous, financially prohibitive, commission-based system it used.
Ms Tan said bookings from online booking networks around the world have also grown by 30 per cent since 2010 when SiteMinder’s Channel Manager was introduced while direct reservations from Avillion’s own websites, using TheBookingButton from SiteMinder, have risen by a substantial 25 per cent.
“In 2010 we were seeking a channel management solution to expand our online reach and some of the online travel agents we work with suggested we partner with SiteMinder,” Ms Tan said. “We discovered SiteMinder also had a commission free booking engine that could help us increase our online bookings, provide a fresh new look and simplify our website reservation process so we are successfully using both systems to power our growth.”
“We have found TheBookingButton to be very user-friendly with quick and easy steps for our guests to make reservations on our own websites. The fixed monthly cost instead of commissions delivers to us considerable cost savings and efficiencies and the booking platform also allows guests to book other services such as limousines, spa packages and other leisure activities, adding to incremental revenue. Since partnering with SiteMinder, we have seen significant increases in revenue and cost savings across the board at our properties. Managing room allotment and the loading of rates and availability around the clock is also far easier now, which helps us to maximise revenue across the booking spectrum and minimise labour completing these tasks,” Ms Tan said.
SiteMinder’s Senior Business Development Manager for Asia, Kevin Tatem said, “Hoteliers worldwide are seeking to cut costs in what is a challenging market and we’re delighted SiteMinder’s flat-rate Channel Manager and commission-free booking engine, TheBookingButton, have helped the Avillion and many other property groups around the world lift their profit margins.”