Facing visibility problems on the Global Distribution System (GDS) is not uncommon. You can change this by partnering with the right consortia and getting the most out of your GDS investment. Let’s explore.
What’s Consortia?
Consortia and Travel Management Companies (TMCs) can be groups of independent travel agencies that come together under one umbrella, Franchise groups or wholly-owned chains. They often negotiate preferred rates with hotels for the benefits of their corporate clients.
That’s where the simplicity can end for a hotel if they do not have a good GDS Hosting partner, such as STAAH GDS.
There is no single guiding document or source to help you choose the right consortia for you but STAAH GDS in conjunction with its partners, such as Sabre, can assist.
Why You Need to Join Consortia and TMCs?
- Increased visibility for your property via exposure through the consortia’s marketing communications and rate plans in the GDS.
- Greater booking potential as travel agents first looks at the selected hotels in the consortia programme. If the rates are more competitive than the best available rate (BAR) in the GDS, it’s their preferred option.
- Increased revenue via exposure to travel agents who may book at a higher average daily rate. Also, these typically are business travellers who are high spenders and stay longer.
What Does Consortia Have to Do with GDS?
Consortia and TMCs are the major producers of Business Traveller GDS reservations globally.
Hotel Consortia/TMC rates are one of the rate plans on GDS but are the most important. Once you sign up with STAAH GDS, and you join a Consortia/TMC program your Consortia/TMC rates are loaded into the GDS by our team along with the other rates e.g. BAR.
When an agent searches for hotels with their Consortia/TMC code in the GDS, only hotels listed as part of the Consortia/TMC will show up. However, the rates themselves need to be negotiated between the Consortia/TMC and you.
In general, the order of rates for a company is:
- Negotiated company rates
- Consortia/TMC rates (starting with preferred hotels)
- Public rates / BAR
Things to Keep in Mind When Choosing Your Consortia/TMC Partners
- Look for partners who are known to produce GDS business into your market.
- STAAH GDS can provide information to your hotel as to the most productive Consortia/TMC so you can make informed decisions as to who you want to be listed with.
- Make sure you have an active approach in communication with these partners. STAAH GDS can provide names of contacts within these partners.
Ensure You Have Prepared:
- Negotiated company rates
- Consortia/TMC rates (starting with preferred hotels)
- Public rates / BAR
- Prompt responses to RFPs
Where to Start?
As a STAAH GDS client, we recommend you sign up with Nexus World Services which is your gateway to joining any of the Consortia/TMC programmes. For details contact Nexus World Services or John Clune.
Contact RFP sourcing tools to set up a free non-subscribing login.
- Sabre RFP – HotelRFPSupport@Sabre.com
- LodgingLogistics – support@prolodgic.com
- Ratefinding – Michael.Meyer@dertouristik.com
- HRS – sourcing@hrs.de
- Lanyon – support@cvent.com
How Much Do Consortium Programmes Cost?
Each programme has a list of requirements and fees for participation, but the standard requirements may include:
- A minimum of 10% off the lowest single published rate
- Rate parity among all programmes
- Last room availability guarantee
- 10% commission
- All rates quoted are to be guaranteed for the entire year starting from January 1 – December 31, unless otherwise noted.
These costs are in addition to your GDS connection, but worth it if you want the exposure and additional bookings. To give you an idea, the Flight Centre Consortia programme is a marketing investment of USD $710.00 per year.
When you review your marketing spend, see where you are spending and the returns. The cost of Consortia/TMC programme participation could come from this budget with clear results to measure the success.
Is It for All Properties?
Participation in Consortia/TMC programme requires a considered investment.
It also requires the commitment of inventory and rates. The programme is highly relevant to properties in the metro, regional city, and regional centre hotels. For motels and apartment complexes with corporate clients, being on GDS is an opportunity, and adding in Consortia/TMC participation becomes highly relevant.
It is unlikely GDS is a fit for properties less than 20 rooms.
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Do you have questions about GDS or Consortia/TMC participation? Email John Clune at STAAH; he will be happy to assist you.