Online distribution management is the new mantra

With the penetration of the Internet, eRevMax Technologies has heavily
delved into an online distribution model. However, Ghosh reiterated that it is
only by working through the channel network, one is able to personalize
solutions and services

Brief us about your solution offerings.

eRevMax is a hospitality software solutions company that has created a suite of
products to help the hotel industry manage Internet distribution systems. Our
flagship product, RateTiger provides the ability to run competitor analysis,
automate revenue management and manage efficient allocation of rates and
inventory online. Most of our products are available in Lite and Pro versions
depending on how advanced the customer requires functions for online channel
management.

In recent years, the mid-segment and the independent hotel market has shown
an increasing interest in RateTiger. This customer base clearly sees the benefit
and potential in our tools. By offering simple to use products we enable greater
exposure and control of potentially new sales channels. The provision of Lite
products give small hotels the opportunity to remain competitive against larger
hotels and local chain properties.

How has the Internet revolutionized online distribution and management?

The Internet has been a medium that has revolutionized the way various
industries do business, primarily by providing additional sources of sales, ease
of search as well as other efficiencies. The hospitality industry has not been
exempt from this movement. With 'Internet Bookings' coming into existence, the
pace in which online bookings have grown in the last few years, is exceptional.
For most part, two major types of players service the online reservation
industry, hotels and third-party travel companies. Hotels provide the inventory,
third-party travel companies help to distribute such inventory to end consumers.

For the hospitality industry, the online booking business is a logical
extension for their central reservation networks and brand support. It is in the
arena of third-party travel companies that we find unique product offerings,
innovative business models, and challenging decisions for hotels to know how and
when to use these channels. Third-party travel companies such as, Expedia,
MakeMyTrip, Yatra, and Travelguru among many others have captured a large number
of visitors looking for a one-stop-shop for all their travel needs.

What is the future of online distribution in the present scenario?

Given its size, huge marketing capability and wide distribution network,
most hotels find it beneficial to participate with these channels as they
realize that the mark up gained by these channels is almost equal to the cost of
the reservation coming via their direct distribution channels. Also, if they do
not participate, they will lose their marketshare from these rapidly growing
distribution channels.

It is evident that the third-party online distribution channel clients and
end-consumers are price and product focused. One should constantly monitor new
and innovative online shopping and maintenance tools, and be willing to quickly
embrace them if such offerings prove to be advantageous.

Do you have a channel model or a distribution model in place for your
solutions?

RateTiger has dedicated sales managers in over seven regions worldwide with a
team specifically looking after India and the APAC region. Our sales managers
are the first point of call for inquiries and discovering the opportunities for
your business using our online channel management products. RateTiger's sales
team are intensively trained in all areas of revenue management to help
hoteliers understand the role the Internet has to play in sales today and how
our applications can serve best.

We also have a number of agents selling our products who have worked with
RateTiger for a number of years. We have carefully selected such agents to
ensure high quality sales. Amongst those agents are Amadeus and Pegasus,
reputable companies in the hospitality industry.

We work closely with our agents and sales managers to ensure that we respond
to each and every query to help develop RateTiger products. By selling through
partner agents and our own team of experienced sales managers, we can provide a
personalized service in order to meet bespoke requirements for each individual
property.

How has the global slowdown taken its toll over the industry?

The Indian hospitality segment seems better off compared to the global
hospitality sector. The reason is that until a few months ago, demand for rooms
exceeded supply, leading hoteliers to charge higher rates. As demand falls, a
sense of balance seems to occur; occupancy levels in hotels in India are not
expected to drop significantly due to an adequate adjustment in selling rates.
However, there is a fear that a drop in rates might be higher, compared to
global averages predicted due to the higher increase that we experienced prior
to the current economic situation.

What are the future plans of the company for the near future?

Until now, Europe and the US have been our core markets. Recently the Asian
markets have shown an increased interest in our solutions as they tune into
online bookings. We are receiving more and more leads from countries like China,
Japan and Singapore but mostly from India. We plan to focus on these markets to
expand our presence and serve hoteliers with our simple and useful products as
the Internet becomes an important sales channel.

We will continue to partner with other technology providers and CRS companies
for seamless integration of systems with RateTiger products to better assist
hoteliers and eliminate manual steps even further. We intend to continue
developing new products and features to help hoteliers sell their inventory
efficiently and remain competitive online.

Avishek Rakshit

avishekr@cybermedia.co.in