Hotel Online  Special Report


 
WorldRes Agreement Gives VIP International Hotels
Second ‘Low-Fee’ Merchant Model Program

WorldRes – VIP International Partnership Provides VIP Hotels with Greater Internet Reach, Flexibility Without Incurring Distribution Costs Added by Other Companies

Calgary, Alberta, Canada — September 2, 2003 — VIP International Corporation, a channel marketing provider committed to driving more revenue for hotels, today announced a groundbreaking partnership with WorldRes, a leading online hotel reservation network, that will connect VIP client hotels to WorldRes’ expanding organization of distribution channels directly through a property’s central reservation system (CRS).  The WorldRes partnership gives VIP hotels the Internet reach of a flexible merchant model program without incurring additional distribution costs that other companies may add-on. VIP International will offer the new WorldRes merchant model program and expanded customer distribution to its clients immediately.

“VIP’s new partnership with WorldRes means our hotels will receive additional reservations and business more easily,” said Kelly Blake, president of VIP International.  “Increased reservations will be a result of greater distribution--in the form of being on more Internet sites and having better placement on these sites.  VIP will offer a seamless link between our clients’ central reservation systems and the WorldRes system that automatically updates net-rate booking sites with a property’s current rate and availability information.   This will give our hotels the controls that are missing in most other Internet net-rate booking channels, and VIP will provide this added service at no extra cost to hotels already using our other online and voice services.”

In addition to inventory and rate controls, hotels using VIP International as their Internet channel partner will also benefit from the WorldRes agreement by receiving promotional opportunities throughout the WorldRes system, including PlacesToStay.com and over 2,000 worldwide partners. 

The majority of online hotel reservations in the market are currently made through merchant wholesalers that obtain rate commitments and inventory allocations from properties, and communicate reservation information back to the properties via fax.  Hotel companies need to move away from this disconnected sales model to improve yield management and automate the reservation process through the property’s CRS.   The WorldRes agreement delivers hotel connectivity to VIP clients and puts real-time sales management control directly into a property’s hands.

“The benefit to hoteliers of WorldRes’ new NET Rate Seamless program is the ability to yield rates and manage inventory on the fly,” said Don Smith, WorldRes vice president of sales, who noted WorldRes and VIP have had a strong partnership for more than five years.  “VIP is one of the first representation companies to benefit from unique distribution benefits via a seamless link with WorldRes.  Both companies look forward to increasing the reach and volume of reservations by promoting VIP member properties’ NET rates on the WorldRes network, which includes the largest airline consortia of Europe, OPODO, and leading consumer travel Web sites throughout the world. 

“We understand the pricing pressure hotels are facing in the current economy,” said VIP’s Blake.  “Our hotels were extremely responsive to the last Low Cost Distribution plan we offered; participation in our Travelweb program has grown 180% since its introduction last May, and reservations to participating hotels are up 9% in the past month.  The clients that can really benefit from these programs are management companies, independent resorts, and corporate business properties.”

The WorldRes partnership with VIP combines the strengths of each company to bring hoteliers a portfolio of services that includes:

  • Full yield management on rates and inventories;
  • Seamless 2-way links to property Central Reservation Systems – No faxes or allocations;
  • The ability to sell retail rates along with net rates that let the customer decide the risk;
  • Icons to highlight special rates.
Merchant model sites and flexible booking programs are becoming increasingly frequent, and are more effective for Internet distribution than just posting retail rates.  Booking sites understand the merchant model works best for them because the hotels themselves are responsible for maintaining rates and availability.  “VIP International continues to be Internet aggressive and deliver the best programs available to our hotels,” said VIP’s Kelly Blake.  “As the number of merchant model sites grows, our programs will evolve to deliver the most bookings at the highest rate.  Our partnership with WorldRes is just one element of the total commitment we have to our clients to be their number one producer of bookings per client.”

About VIP
VIP International (www.vipintcorp.com) is a channel marketing organization that drives revenue for hoteliers, car rental owners and regional airlines through a multi-channel reservation sales center, the adoption of leading-edge technology, and partnerships with clients to provide ongoing education.  Founded in 1979, the privately held Calgary, Alberta-based firm pursues a mission of being "The number one producer of bookings per client." This is accomplished through mastering the electronic channel marketing environment, developing and implementing strategies for each client's unique position, and educating customers about how to optimize participation in the changing electronic marketplace. The company is a central distribution point to every viable Internet web site, and to all of the major global distribution systems including Sabre, Galileo, Pegasus, WorldRes, Amadeus, and Worldspan. VIP International has business development offices in Denver, Colorado; Kansas City, Kansas; Toronto, Ontario; London, United Kingdom; Buenos Aires, Argentina; and Hong Kong.

About WorldRes
WorldRes is a leading online hotel reservation network that connects 35,000 hotels, inns and resorts in 140 countries to more than 5,000 Web sites and partners around the world, including WorldRes’ own consumer Web site, PlacesToStay.com

WorldRes also distributes independent hotels to all major Global Distribution Systems, reaching 450,000 travel agents worldwide. Founded in 1995, WorldRes is headquartered in San Mateo, California, with offices in Germany, France, and the United Kingdom. 

WorldRes is one of the top 5 sources* of online hotel reservations.

* 'PhoCusWright's "Hotel & Lodging Commerce 2002-2005;" November 2002'

###

Contact:

Rita Emmer
Vice President, Sales
VIP International Corp.
(303) 674-1176
[email protected]
www.vipintcorp.com

Lisa Perlmutter 
WorldRes
1510 Fashion Island Blvd., Suite 351
San Mateo, CA 94404
(650) 570-3473
[email protected]
www.worldres.com



 
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