Calgary, Alberta, Canada - April 24, 2003 - Internet Distribution Service (IDS) channels are the fastest growing source of hotel reservations according to industry reports, but a majority of hotel operators still feel uncomfortable with the complexity of their options and the tradeoff between Web reservation volume and plunging ADR. Web reservations cost less to generate than almost any other source, and as hotels learn how to use this profitable reservation channel the result is higher occupancy and increased room revenue. A group of hotel operators who were the most successful at utilizing Web, GDS and IDS channels were recently spotlighted by VIP International as the Top Five Web Success Stories of the past year. Here are their Web channel and GDS strategies. Executive Inn and Suites Boosts Web Bookings 60%; Refuses to Play
the �Rate Game�
�We team with VIP International, a channel marketing company that drives sales, to learn the best Web options to accomplish our goals of booking more rooms in our low periods while keeping our rate up,� continued Kalen. �They introduced us to several new concepts, like the travel agent e-Blast. When we forecast a slow period coming, like a holiday, we do an e-Blast promotion to over a thousand travel agents and consortia that work with VIP. On average we pick up 100 to 150 rooms per blast. We also created a campaign for our new suite rooms via a three-week headline promotion special on Sabre that generated 400 room nights; and later took a preferred position on Galileo so anyone checking that service sees our name near the top. Year to date our occupancy is running 10 percent above our comp set, and our ADR is $3 above the local market. VIP has boosted our channel reservations by over 1,300 percent during the last year. I am happy to partner with a company that helps us learn what works and what doesn�t.� Mango Inn Increases Web Bookings 842%, Travel Agent GDS Bookings Grow 60% Located within walking distance to the beach in the resort and gaming district of Isla Verde in San Juan, Puerto Rico, the Mango Inn began focusing on electronic reservations in 2002. Initially, the property�s owners distributed through Pegasus, then, working with VIP International they expanded to Travelweb, and participated in Travelocity Hotels Only and the Orbitz promotional rate programs. As a result, total Internet bookings increased 842 percent. �We have become successful at using the Internet booking channels,� said Carmelo Ortiz, Mango Inn�s owner. �Our reservation volume through VIP has increased, but not at the expense of our travel agent reservations. Thanks to VIP�s help, our GDS travel agent bookings are also up over 60 percent.� Overland Park Inn Grows More Web Reservations, Orbitz Provides 48%
of Total
Clubhouse Inn and Suites Earns 140% Increase in Internet Reservations YTD Growing hotel chains are also taking advantage of new Web booking strategies. �Our channel marketing provider advises me on new Internet sites and programs, and I make decisions several times each week on net rate programs for our 12 Clubhouse Inn & Suites. VIP International connects each Clubhouse Inn & Suites to all the sites Regency selects via one central point of inventory, and each hotel manages its own rate,� said Gloriann Kueter, corporate director of sales and marketing for Sioux Falls, South Dakota based Regency Hotel Management, who oversees the booking of all 34 Regency properties, and is especially focused on the company�s expanding Clubhouse Inn & Suites flag. �We use the Lodging net-rate program, Travelocity Hotel Only, Travelweb Net Rate, Priceline net rate, and Hotwire net rate. By accepting a net rate program, each hotel agrees to offer a rate at least 25% to 30% lower than their published rate. In return they receive a more prominent listing, which could be on page one instead of page three of a travel Web site, but it requires daily management.� Kueter observed, �As a result, Clubhouse Inn & Suites realized a 140% increase in total Internet reservations 2003 over 2002.� Bradford Homesuites Improves Internet Bookings 350% for February Year Over Year �Bradford Homesuites is a very entrepreneurial company by nature,� said Todd Fitzerman, owner, and Senior VP of marketing. �That means when there was a change in the operating environment, such as the Internet precipitated two years ago, we made the same quick turn a speedboat would make to take advantage of it.� Two years ago Bradford Homesuites' management team realized travel agents were having a difficult time finding their properties on the GDSes, and that reservations through that channel were slipping. Quickly, they hired VIP International Corporation to help remedy the situation. According to Michelle Tokarczyk, director of revenue management, Bradford Homesuites uses VIP's GDS and voice center services, as well as their consortia and real-time Web site reservation services. �We now pull a good percentage of our revenue from the GDS channel, and our total Internet reservations for the month of February are up 350% over last year.� About VIP International Corporation
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