Hotel Online  Special Report

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Study: Room Rates 6.5% Higher For
Reservations Booked From Hotel Sites
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VIP International Launches Website Services
to Drive Traffic to Property Sites

Calgary, Alberta, Canada — December 10, 2003 — VIP International Corporation, a channel marketing provider committed to being the “number one producer of bookings per client,” today announced it is responding to a recent hospitality study showing property websites generate 6.25 higher percent average reservation rates at the lowest cost per reservation, by adding a suite of Website Services to funnel more business to clients’ Internet sites.  VIP’s new Website Services will include site design and Search Engine Optimization to give properties the ability to book more business over their most profitable reservation channel, their hotel’s website.

Hotel Websites Drive Higher Rates 
 

A study of forty leading hotels conducted from January through October 2003, comparing reservation rates booked through third-party channels versus property-controlled websites, showed 90 percent of properties generated rates significantly higher than those from non-property-based channels.  “In the past two years hotels have seen Internet-based reservations skyrocket,” said Kelly Blake, President of VIP International.  “Our recent booking study of high-volume properties made a strong business case for hotels becoming more Web-centric.  The 
Kelly Blake
President & CEO
VIP International Corporation
survey reveals that hotel-site rates are often 15 percent above those of any other electronic channel.”  Almost all channels like Expedia, Orbitz, and consortia provide negotiated rates.  Rooms sold through GDSes are assessed GDS charges and often carry a travel agent fee as well; together these fees can total 18 percent of the room rate.  Because a property’s website has the potential to bring in the highest rates at the lowest cost per reservation VIP International is launching a new suite of Website Services designed to maximize the traffic to clients’ booking sites.  VIP is partnering with SECURE-RES, a leading edge Internet specialist, to provide the most advanced search engine optimization and website design services to its clients.

For more than two years VIP International has supplied hotels with Book-A-Res, its website booking engine that allows guests to reserve hotel rooms in real-time directly on the property’s website.  Now, with VIP’s new Website Services package, it is providing hotels the ability to drive as much reservation business as possible through their own sites.  “A hotel can expect an effective website marketing program to generate 25 to 30% of its electronic bookings. Given the fact that the hotel’s website is its least expensive sales channel, the hotel will produce its greatest profit from these direct sales compared to the alternate channels.  The majority of our current 800 plus hotel clients have seen consistent growth in sales from their websites.  This growth is a direct result of our enhanced site design, search engine optimization, pay-per-click advertising and the hotel having the ability to adjust rates and availability instantly.  We look forward to delivering comparable success to the VIP hotel clients,” said Joe Hyman, President of SECURE-RES.  Mr. Hyman added, “We expect our partnership with VIP to bring a new level of sales success to their hotel clients. 

“VIP International has a responsibility to deliver the highest rates and greatest reservation reach across all channels for its clients, but ultimately a property’s website is the only channel they control completely,” explained VIP President, Kelly Blake.  “They decide the rate, the branding strategy, and how they market amenities.  We are giving hotels the option of making their website the focal point for new reservations.  Our new Website Services package will drive retail-rate reservations to hotel sites to create brand loyalty and higher rates.” 

About SECURE-RES
SECURE-RES (www.secure-res.com) is an Internet marketing company dedicated to the hospitality industry.  The company’s headquarters are in Jacksonville, Florida with regional offices in Los Angeles, California, Washington DC, Atlanta, GA and Miami, Florida.  Founded in 1998 SECURE-RES is privately held.  Today they provide their business partners and clients with a complete selection of professional services; including reservations, marketing services and website design & hosting.  SECURE-RES has grown from an Internet reservation website to a leading supplier of Internet marketing services and solutions for the hospitality industry.  The company today hosts over 1,400 booking engines for its 800 plus business partners and hotels.  Its customers include luxury resorts like The Del Coronado in San Diego, hotel management companies such as Hersha Hotels and hundreds of hotels and resorts in all segments of the industry. 

About VIP
VIP International (www.vipintcorp.com) is a channel marketing organization that drives revenue for the hotel and car rental industries, 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 now 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 website, and to all of the major global distribution systems including Sabre, Galileo, Pegasus, WorldRes, Amadeus, and Worldspan.  Clients include Interstate Hotels and Resorts, Clubhouse Inns and Suites, Candlewood Suites, Bradford Homesuites, Regal Hotels, Best Rate Car Rental, E-Z Rent A Car, and Canadian North Airlines.  VIP International has business development offices in Denver, Colorado; Kansas City, Kansas; Toronto, Ontario; London, United Kingdom; Buenos Aires, Argentina; and Hong Kong.  For more information visit www.vipintcorp.com.

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Contact:

Rick Shaum
Vice President Sales and Marketing
VIP International Corp.
Main: (403) 269-3566
rshaum@vipintcorp.com
Cell: (719) 487-0789
www.vipintcorp.com

Richard Walsh
Vice President Sales and Marketing
SECURE-RES
Main: (904) 389-1130
rwalsh@secure-res.com
Cell: (770) 833-7273



 
Also See An Affiliate of VIP International, Reaches Definitive Agreement to Acquire Lexington Services / November 2003
VIP International Boosts Hotel Reservation Services, Selects Voxify to Reduce Costs for Clients, Enhance Call Center Efficiency / October 2003
#1 Provider of Car Rental Software Teams with VIP International to Fuel Independents’ Reservation Volume / October 2003
Business Travelers, Consumers Grab Lower Rental Car Rates, Book Online from Independent Agency Site / September 2003
E-Z Rent A Car Perfects Internet Strategy to Boost Reservations 20% in 2003 / September 2003
WorldRes Agreement Gives VIP International Hotels Second ‘Low-Fee’ Merchant Model Program / Aug 2003
Top Channel Marketing Provider VIP International Taps Industry Veteran to Power Marketing Efforts, Funnel 158% Growth  / Aug 2003
VIP International Cements Reputation as Leading GDS and Channel Marketing Provider for Asia Pacific / Aug 2003
Hotel Owner/Operators Disclose Secrets of Web Booking Success / June 2003
Dave Crawford Appointed Director of Airline and Auto Rental Business Development for VIP International / June 2003
Hotel Company Sharpens Channel Management for 22% Increase in Average Length of Stay for GDS Bookings, 14% Jump in ADR / June 2003
Interstate Hotels, Candlewood Suites, Regal Hotels, Canadian North Airlines Shift Call Center Responsibility to VIP: Interstate To Pass Along 8% to 10% Savings to Properties; Regal Hotels up 26% / May 2003
Zero Transaction Fees: Independent Hotels, Chains Profit from Landmark Agreement; Manage Discounted Rooms Through Central Res Systems at No Cost / May 2003
Interstate Hotels & Resorts Signs Five-Year Agreement with VIP International to Outsource Call Center; Expects to Pass Along 8 Percent to 10 Percent Savings, Increased Revenue to Hotels / April 2003
Hong Kong’s Largest Hotel Operator Sees Reservation Numbers Jump 26 Percent In First 10 Months of 2002, Increases Global Presence with New Reservation Sales Provider / February 2003
Canadian North Chooses Calgary-based VIP International to Provide Voice Reservation and Support services / January 2003
Midwestern Chain Targets Value-Conscious Senior Market; Picks New Channel Marketing Provider to Power Goal of 100% Increase in Bookings / January 2003
Midwestern Management Firm Gains 69% Increase in GDS Reservations YTD at 12 ‘Enhanced Limited-Service’ Properties / Dec 2002
Texas-Based Hotel Chain Captures 104% More GDS Reservations YTD, Speeds Ahead of Economy / Dec 2002
Four Star Calgary Hotel Reports 42% Increase in Bookings During Initial Period With New Channel Marketing Provider / Nov 2002

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