Here's a quick overview of the challenges facing hotels and startups in the Hospitality Industry. Suite 999 understands these challenges because we have a keen grasp of the Hospitality Industry from the inside and the opportunities available. Checkout suite999.com for more information.
2. BARRIERS TO INNOVATION
• Franchised hotels don’t have total control on pricing and
promotions
• Most hotels want a choice but are forced to work with the
rules imposed by hotels chains, distributors and discounters
such as Priceline
• Startups looking to disrupt the industry are faced with the
same challenges and most don’t even understand them
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4. GDS BARRIER:
GLOBAL DISTRIBUTION SYSTEM
• Holds a virtual monopoly on
bookings from all major travel sites
such as Expedia, Travelocity, Orbitz
and travel agents
• Allows access to hotel inventory &
pricing
• Hotels pay a fee for every room
booked in addition to commissions
• Example: on a $100 booking, a hotel
pays $10 in commissions and $5 in
GDS fees
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5. LOWEST INTERNET RATE
GUARANTEE BARRIER
• Hotel Chains have imposed rules
so that the rate for a room at a
particular hotel is the same across
all websites
• They don’t want external sites to
show rates lower than brand sites
• Example: Orbitz, Expedia,
Travelocity
• Priceline and Hotwire are exempt
because the name of the hotel is
not known until paid for by the
guest
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6. TPI BARRIER:
THIRD PARTY INTERMEDIARIES
“DISCOUNTERS”
• Massive discounter of rooms
which is disliked by both
individual hotels & chains because
they erode value & set arbitrary
pricing
• Discounted rates are offered
because the names of the hotel is
unknown until the transaction is
completed
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7. TPI “DISCOUNTERS”
• Hotels often have to discount 50% or more just to stay in the game. Hotwire or
Priceline adds their profit on top to come up with the rate
• Example: $100 room must be discounted to Hotwire for $50, which then sells
the room for $75. Hotels don’t like that they can’t control the rate given to
guests and Hotwire making such a large profit on the transaction
• By being able to list unpublished rates, hotels are allowed to maintain rate
integrity or “keep up appearances”
• Example: An upscale hotel may offer a discounted rate to Priceline at $75, but
will continue to only show a published rate of $150 across major websites
• The hotel doesn’t have a choice to offer a lower advertised rates on different
websites because of....
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8. HOTEL CHAINS ARE BARRIERS
• Chains created the lowest
internet rate guarantee
• They enforce it through
their property management
systems
• They are forced to continue
working with discounters
such as Priceline and view it
as a necessary evil
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9. HOTELS ARE STUCK
• They can show a publicly available rate which is the same
across all sites because of the Lowest Internet Rate Guarantee
• If they wish to discount, its only through massive discounters
such as Priceline and Hotwire
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10. HOTELS ARE STUCK
• They would welcome another option which would give them
control, flexibility in their pricing and distribution
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13. SUITE 999: MOBILE. SOCIAL.
ONE TO ONE.
• Suite 999 bypasses the GDS and their fees
• Suite 999 does not violate the lowest internet rate guarantee
• Suite 999 allows hotels to individually chose what discounts to
give and when to give them
• Suite 999 allows guest to pick their hotels and still receive a
large unpublished discount
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14. SOCIAL & FUN
• Facebook Connect is the default sign-in application
• Guests receive receive credits for referrals to their friends who
also receive credits for signing up
• Guests are rewarded for posting offers to walls, checkins & likes
• Gamification of the entire Hotel Booking Experience
• Ongoing demographic marketing based on checkins in various
cities
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15. SUITE 999 TEAM
• Rahim Kassam and Alim Haji are both second generation hotel
owners and managers who understand the industry and see a
need for a new solution.
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16. SUITE 999: WELCOMED DISRUPTION
FOR THE HOTEL INDUSTRY
MOBILE. SOCIAL. FUN.
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17. INTERESTED?
CONTACT US TO LEARN MORE
RAHIM@SUITE99.COM ALIM@SUITE999.COM
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