|
Consortia 2011 Directory
Below you will find a list of consortia programs that Luxe will partner with for the year 2011. Over the next few months you will receive several e-mails keeping you up to date with the bidding process for next year. We hope that over the next year you will see improvements in revenue and awareness. Below is an instruction packet outlining what consortia are and what benefits each program may bring. There is also a brief section with frequently asked questions. Your Luxe team will be available to help you with any questions that may come up.
What is a Consortium?
According to HEDNA a consortium is a "rate negotiated between a hotel company and a travel agency group. Viewership of these rates in the GDS by a Travel Agent or other GDS user is restricted and the rate may be booked only after entry of either the agent’s or client’s authorization code." Originally started for “mom and pop” travel agencies, consortia have become a major player in the travel industry. A consortium is a conglomerate of travel agencies many times driven by multinational companies joined together. By doing this, they can now increase marketing to their customers by offering competitive rates at hotels worldwide. They are usually found using one global name (ABC Corporate Services) or continuing to keep their name, while using the relationship and tools of the program that they are members of. Each program has a list of requirements and fees to participate, but the standard requirements include:
- A minimum of 10% off the lowest single published rate (Rack and/or Corporate)
- Rate parity amongst all programs
- Last room availability guarantee
- 10% commission
- Rates required for the entire year starting from Jan 1 – Dec 31, unless the hotel is seasonal
What formula should I use when creating my consortia rate?
As stated above, one of the primary rules is that your rate is at least 10% off the lowest single published rate. Consortia require rack and corporate rates to be submitted for benchmarking purposes. The corporate rate should always be below rack (and depending on the program must be no less than 10%), and the consortia rate must be a minimum of 10% off the corporate rate. To be safe and to ensure that you have no problems doing submissions, your formula should be:
Rack minus 10% = Corporate
Corporate minus 10% = Consortia
| Ex. | Rack | $100.00 |
| Corporate | $90.00 |
| Consortia | $81.00 |
* Best Available Rate – When using Best Available Rate, Consortia use the contracted rates as a ceiling. However, many hotels are now choosing to derive their consortia rates from BAR in order to ensure that those travel agents always get the lowest available rate. To make your property even more attractive, we suggest taking it one step further by giving an additional dollar amount or percentage off of BAR—many of our members are doing this with significant success.
Sato and FedRooms are the exception to the rule; they do not follow the same rate structure as their rates are derived from Government per-diem.
What are the programs that I can participate in, and what do they offer?
|
ABA - American Bar Association Silver Label Hotel Program
ABC Corporate Services
American Express Preferred Extras
BCD Travel
Booking Services International (BSI)
Carlson Wagonlit Travel
Computerized Corporate Rate Association (CCRA)
Custom Travel/Hickory Travel (CTS)
DERHotel
DERTour
ehotel ag
FCm Travel Solutions
FedRooms
Guild of Travel Management Companies (GTMC)
Hogge Robinson (HRG)
International Travel Partnership (ITP)
Japan Travel Bureau (JTB)
Partnership Marketing Network (PMN)
RADIUS
Sato Travel
THOR
TravelGraphics International (TGI)
TravelSavers (TSA)
Worldwide Independent Network (WIN)
|
|
Consortia Sign up and Rates
Sign up now!
Benefits to Participation
- Increased visibility – By partnering with these programs, hotels will be listed in each program's directory, website, and will have a special rate access code through the GDS. This exposure includes agencies that book specified negotiated rates within the consortium umbrella.
- Increased revenue – Hotels will see an increase in GDS revenue generated through these partnerships.
- Relationships with TAs – Participating in these programs would allow you the opportunities to form your own relationship with these agencies. Relationships that can help to generate exposure, eventually leading to revenue.
- Marketing opportunities – Each program has a number of marketing opportunities a property can participate in.
Frequently Asked Questions
Can I change my consortia rates?
A rate cannot go higher than the contract agreement rate; however, a hotel can choose to lower a rate at anytime. For increased opportunity try using BAR contracting.
Can I change my mind and cancel my contract?
It is not advisable to cancel your contract with a program. Consortia may black list your property and advise their agencies not to book at your property. The consequences can be severe.
Can I offer different rates to different programs?
Parity is the rule when dealing with consortia. What one program has the other must have as well. Many programs will ask for a better rate, however it is the best practice to offer the same rate to all. The exception to this rule would be FedRooms and SATO, where rates are determined by the government per-diem.
What is the BLOCK SPACE program?
It is a guaranteed room block set aside for certain programs at your property. The block includes dates that you are sold out. The consortium in question will contact the hotel directly, to confirm rooms from the blocked space.
Do I have to participate in BLOCK SPACE?
Certain programs require hotels in certain markets to participate in the BLOCK SPACE program. For a list, please review the description of each program in Lanyon.
Do I have to give last room availability?
Contractually, all consortia require Last Room Availability. Therefore, you may not close out your consortia rates if the property is not closed out as well.
What does my participation fee into the program entail?
Each program is different and would need to be reviewed before a decision is made to participate in that program. Luxe Hotels will be sending a spreadsheet out periodically throughout the submission season in order to keep you up to date.
If I miss the deadline set by the consortia, can I still participate?
Many programs allow hotels to participate in a limited fashion after deadlines have been missed. Most of the time you will miss the directory publishing, however depending on the program you will still have all the other benefits. These benefits include but are not limited to: listing on their corporate website, CD Rom, and GDS listing. Some consortia will require a late fee.
How do I pay for these programs?
Your hotel will be invoiced by Luxe Hotels for all programs you select on Passport in the billing cycle following your sign-up. For programs with different levels of participation, you will be billed the basic program fee initially. If, when completing the RFP, you choose a higher level of participation or add on extras with a fee (such as marketing options) you will be billed separately to cover those additional fees. Luxe Hotels will remit payment to the consortia programs on your behalf.
Can I do Corporate Direct Bids through SynXis (Lanyon)?
Yes, you can do corporate direct bids as long as they fall into the following formats: NBTA, LodgingLogistics, Uversa, RFPexpress, and CWT. You may be requested by a company to do a bid request for the RFP. Instructions may include: module accepted (NBTA), file request in the module, custom questions, and who to send the submission to. If you have any questions regarding this, please check with your Consortia Manager.
Can I offer net rates to the programs?
The Lanyon tool will allow you to set a net rate to the consortia. Not all programs offer a net rate, but you may load a net rate for those programs that do.
|
|