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Use SiteMinder To Save Money And Earn More Revenue

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SiteMinder is the world’s leading channel manager that is packed with features to help hotels perform better. Some of those features includes its website builder, its ability to be integrated with 100+ property management systems (PMS) for hotels, and the ability to be connected to 200+ online travel agencies (OTAs) and other web apps to help with productivity. All of these are great for hotels to improve their overall operation. This post is going to highlight some of the other positives for SiteMinder: low transaction fees, Demand Plus, and the Insights that are available for the competition.

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Low Transaction Fees

This is the one feature that will save your hotel or property the most money. If you use a competing channel manager like Sabre’s SynXis, hotels are charged a small fee for every reservation they take that goes through the channel manager. At the low end, fees are generally cheaper (maybe even free) for web bookings – reservations that are made through the hotel website. At the higher end, are fees for reservations through the GDS (travel agent booking system). In between, there are fees for bookings made through other channels, like Booking.com or Expedia. These fees cover the costs of the development of the channel manager software and integration with the PMS so reservations booked online can be entered into the PMS automatically.

The downside of these fees are they can quickly add up. Below is a sample chart of the fees based on a 33/33/33 split between web bookings, OTAs, and the GDS. To keep the math simple, let’s say there are 3,000 total reservations taken, which is a reasonable number for a 100 room hotel.

A few caveats to the above numbers, they don’t include any commissions you may be paying for the GDS bookings (usually 10%) or the commissions charged through Expedia, Booking.com, etc (around 18%). Altogether, the fees will be much higher than $22,500.

For SiteMinder, they still have a transaction fee for GDS bookings (which is charged by the GDS systems), but they waive the transaction fees for web bookings and OTAs. That produces a chart like this:

The general hotel is likely going to save a lot of money by switching over to SiteMinder. This does not include the potential savings from using SiteMinder’s new product for guest communication, GuestJoy, which is 25% the cost of the competing service, Guestfolio. And, of course, there will be opportunities to earn more through SiteMinder.

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To read the rest and learn more about Direct Plus and the different Insights SiteMinder offers, click the button below.

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Or learn more about SiteMinder:

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