ARTICLE: Are online reservations “inn” your future?

“Despite tough economic conditions, a tense political climate and fewer travelers, the online travel market performed surprisingly well in 2002.”   (Hotel News Resource, 2003-03-18).   Online booking continues to grow, even in the midst of an economy that continues to challenge the travel industry.  In fact, according to the Wall Street Journal, Expedia and Hotels.com are “reaping some of the richest rewards of any business in either the travel or Internet industries”  (WSJ, March 17, 2003).  Its expected that by the year 2005, one in every five lodging bookings will be made online, according to a new report published by PhoCusWright Inc. (Hotel & Lodging Commerce 2002-2005: Distribution Strategies And Market Forecasts)

Several economic and social factors continue to boost the growth in online bookings.  The popularity of online retailers for airline and lodging bookings continues to rise as consumers look to cut travel costs.  Advanced bookings continue to drop, down 20% compared with last year.  Independent properties can benefit from the growth in online travel, as long as they don’t become too dependent on online retailers like WorldRes and Expedia.com which charge hefty commissions (15%-30%) and may erode room rates.

 How does the independent property owner position themselves to benefit from this growing trend in online bookings?  Several factors are important for an individual property’s success in the area of online bookings! 

·         Automatic enforcement of property’s policies 
·         Remote access and easy room management
·         Ease of use – for guest and reservation manager
·         Quick and easy posting of specials

Automatic enforcement of property’s policies

A couple years ago, when only 5% of all rooms were booked on the Internet, a small property could choose to ignore the trend and still enjoy high occupancy rates. However in a couple years, when percentages of online bookings rise to 20%, that’s too large a number to ignore.  For the small property, adherence and communication of their policies is critical to their success in providing service and also protecting their liability.

 Online reservation services that cater to the small and independent properties will need to provide automated enforcement of policies.  Minimum night restrictions, advanced booking requirements (e.g. 72 hours in advance), and acceptance screens for the policies will address the unique process of booking with a small or historic property.  Properties can also choose to immediately transact a deposit online, thereby reducing the likelihood of a guest making multiple online bookings, only to later cancel or become a “no-show.” This automatic enforcement will also assure the sincere guest that their online booking is confirmed and secure.  Of course, as long as online reservations are accepted only several days in advance, the innkeeper has plenty of time to contact the guest, and personally confirm any details.

Remote access and easy room management

The reality for many small property managers, is that they are not always present at a front desk, management office or even on property.  Easy ways to remotely access current reservation information is vital for successfully managing online reservations.  Technology for web-based programs and portable computers will be key components in managing future online reservation systems.  If reservation information can be centralized and accessible from anywhere, the risk of double bookings is removed.

Ease of use – for guest and reservation manager

For technology providers, the challenge is to handle all of the interfaces, automation while maintaining “easy-to-use” screens for the guest and innkeeper.  Policies should be presented to the guest in a friendly manner, so they don’t feel they are signing a “magna carta” just to book a room.  For the innkeeper, they need an easy “step-by-step” process for setting up multiple room rates, discounts, policies and descriptions.  The daily tasks of updating, canceling and confirming reservations must be handled easily – so the innkeeper or their employees are not overwhelmed with managing a reservation system.

Quick and easy posting of specials!

When building a new web site, the tendency is often to dwell on the graphics, design and “feel” of the web pages.  Any innkeeper who is familiar with the traffic on their site, is also well aware of the incredible importance of good, relevant and “rewarding” content.  Corporations that maintain large and complex sites are beginning to use “content management” solutions which let them update text, add pages, change headers through any internet browser.  On a small scale, independent properties use the Front Page program from MicroSoft to achieve the same results. However, more effective and economical solutions will appear so an innkeeper can update their specials, or change text and photos without calling the webmaster every time.  

Online booking products are in an excellent position to begin packaging these services for the innkeeper.  Room, rate and policy information is already in a form that can be updated either from a browser or software program.  Online booking requires online marketing to succeed!  Online products already provide “opt-in forms” and “email engines” for properties to promote their rooms via email newsletters and special announcements.  The same product can provide an easy-to-use interface that links to various online marketing companies and resources.  Managing online booking and online marketing from one program only makes sense for the innkeeper!  

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IN THE NEWS : Tax Shelter – at the Inn!

Connecticut B&B is run by accountant

Wednesday, April 9, 2003 Posted: 10:01 AM EDT (1401 GMT)

GRANBY, Connecticut (AP) -- Checking their bags and settling in for a mini-vacation at the Dutch Iris Inn Bed and Breakfast was going to be a taxing experience for Patrick and Diane Sullivan.

But that's what drew them to this quaint inn's doorstep.

The Simsbury couple was taking advantage of a rather unusual travel offer: Host Kevin Marshall, a certified public accountant, promised to give them a night's rest, breakfast for two and a completed federal Form 1040 at checkout.

"Our tax file has been sitting in the dining room since January 31st," Diane said, leaning back on a living room couch to begin knitting in front of a fire. "It seemed like a great way to pass it off to someone else."

Marshall, who has worked in big firms and owned his own small West Hartford business, said his favorite part of accounting had been talking to his clients -- a natural segue into innkeeping.

"I never got the chance to do that all the time in accounting," he said. 

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For complete story – click here http://www.cnn.com/2003/US/Northeast/04/09/tax.shelter.ap/index.html