January 26, 2004 - TravelHero, a full service
Internet travel technology company, enjoys a number of distinctions from
other online travel sites. Primary among these is the fact that,
unlike all of the other major sites, TravelHero is not based solely on
the information available from existing global distribution systems (GDS)
such as Sabre, Worldspan, Amadeus, or Galileo. All of the mega sites
depend on a GDS provider, and the result is that they have at their disposal
only a limited number of accommodations, about 50,000 worldwide.
Therefore, they have no control over quantity, and to some extent functionality
and presentation. They are limited to only the properties that reside
in their rented database.
Conversely,
TravelHero contains over 126,000 properties and currently has extensive
content on nearly 100% of them. With the most complete lodging reservations
system on the Internet, TravelHero can now make online or e-mail reservations
for properties in 216 countries and over 21,000 cities worldwide.
Because TravelHero distinguishes itself as �hotelier
friendly,� additional reservation types are also offered to hoteliers that
operate in the realm of limited technology. And because TravelHero
owns and controls its own database, it can give the hoteliers direct access
to the content describing their own property. This affords the hotelier
the options to add a new property or to modify existing content.
The result is both a larger database and one with current and quality content,
thereby fortifying TravelHero�s position as the largest, most content-rich
accommodations site on the Internet.
The fact that TravelHero has built its hotel database
from the ground up is another unique feature of the company. Each
hotel offering is based on 131 fields of information and photos that are
updated on a continuing basis. Any updates requested by the hotels
directly are input immediately.
Rather than using a net rate model, the agency
model is the traditional model of business on the Internet and the model
practiced by TravelHero, adding to its hotel friendliness. The online
travel company acts as a travel agent and collects a 10% agency fee for
hotel bookings. This model is very effective for affiliates such as Convention
and Visitors Bureaus, due to the preferred relationship with hotels for
distributing their inventory and consistent pricing. And because
TravelHero sells the rates that hotels load into the GDS systems, the ADR
that hoteliers receive from TravelHero bookings is actually higher than
the hotel�s overall ADR.
Travel Hero has developed programs that give hoteliers
alternatives to the unpopular net rate model. The Elite Partner Program,
currently offered by over 300 hotels in 165 cities worldwide, is a featured
hotel program that allows properties preferred placement on their respective
city pages in exchange for a special discounted rate offered exclusively
to TravelHero customers. The program does not operate on a net rate
model, but rather on a standard 10% commission schedule.
It requires the hotel to provide TravelHero with
its best available rate for sale on the TravelHero website, which allows
for more competitive rates so that it can compete with sellers of the net
rate model. While the hotel gives up some margin with
the best available rate, it is much less than what it would give up in
the net rate model.
Each TravelHero Elite Partner property receives
a number of added benefits when it chooses to participate in the program,
including priority placement at the top of the TravelHero city page, an
eye-catching icon identifying the property as offering special rates, no
special inventory to maintain, and inclusion in TravelHero�s Internet distribution
programs. Each partner also receives six free photos of the property,
an individual listing featuring detailed property description, map and
photos, and worldwide exposure to over 2.5 million TravelHero users per
month.
TravelHero has developed all of its technology
solutions in-house, making it a travel technology company as well as an
online travel provider. TravelHero�s site was designed from inception
to be user friendly both for the hotelier and the consumer. It is
easy to navigate, uncluttered, searchable, much larger than others, and
very fast. Moreover, it expands the consumer�s choices because it
provides them more properties to search and more information about each
of those properties.
Added features of the site include the ability
to search for a property by its direction and distance relative to a metro
area city center, and the ability to search in nearby towns or suburbs.
The Destinations section allows users to search for a generic area or theme,
such as major national parks, beaches, major sports events, ski resorts,
and many more. Lodging properties can be found within specified distances
of these areas.
With its formidable online presence, the product
line that TravelHero offers facilitates not only enhanced online transaction
capabilities, but also generates incremental business. TravelHero�s
suite of products are unique applications which can operate as stand alone
products but are also highly compatible with each other and add to each
others value when combined effectively and marketed together.
ResHero, for example, is a unique product because
it offers the hotel the option of an Internet-based link to the TravelHero
website. Many hotels that are independent or unwilling to pay for
the high cost of GDS connectivity find ResHero a very attractive solution
to give them a wider distribution of their inventory without any upfront
capital cost or set up fees. And there is no long-term commitment.
TravelHero is able to build the content into their website seamlessly and
the hotel manages its own inventory. There is no difference to the
consumer on the TravelHero website from a GDS offering and a ResHero offering.
There are approximately 500 properties currently using ResHero.
GolfHero
is a product to accommodate online booking of golf-related packages including
tee times at destination golf courses and resort hotels. The product
is designed to interface with contracted resorts and at least eight golf
property management systems. The business model is based on a wide
distribution of the product through affiliate relationships with airlines,
hotel companies, destination sites, and hundreds of other golf and travel
related affiliates. There is not a product that is currently available
which enables real time booking of tee times and resorts combined.
GolfHero has a patent pending for its application outlining 58 unique features
to the technology and product offering.
TravelHero Vacations is a recently launched product
featuring complete travel packages that include airfare, hotel accommodations,
ground service, car rentals and optional sightseeing tours. As a technology
and full service travel company, TravelHero has built the dynamic packaging
tools that allow VacationHero to build customized packages plus the ability
to confirm them in real-time. VacationHero began selling packages
on a limited basis in September, 2003 in Mexico and Hawaii.
EventHero provides the technology for affiliates
such as Convention and Visitors Bureaus (CVBs), and other private and public
organizations to power their website�s travel-related bookings. It is the
leader in this industry and currently provides the technology to power
the online hotel arrangements for 90 Convention and Visitors Bureaus.
Fees are earned when a visitor to the website books a hotel reservation
which results in a commission to TravelHero. Successful relationships
with Destination Marketing Organizations (DMOs) has encouraged TravelHero
to further develop a technology to allow any organization that is sponsoring
an event the ability to book accommodations through the EventHero product.
The business model is based on TravelHero providing
its technology to DMO�s on an affiliate basis and splitting commissions
earned from hotel bookings on a 50/50 revenue share basis. The product
is very successful due to the exclusive contract relationship with the
DMOs and the flexible technology that the TravelHero search engine provides.
TravelHero recently acquired Amusementpark.com,
which is the largest online seller of Amusement Park tickets. Amusementpark.com
is a top online destination for tickets, news, and information on amusement
parks. It offers users the convenience of online ticket purchasing
to the nation�s top theme and water parks. It also has the largest
selection of park tickets online with outstanding prices.
Amusementpark.com fits well into TravelHero�s
overall strategy because of the enhanced technology and content that TravelHero
gives the product and because of the ability to leverage travel and vacation
packaging around the amusement park experience. The client benefits
from discounted prices and the convenience of not having to wait in lines
at the parks. The company has already built a successful business
on a consumer direct basis and has plans to offer the product in vacation
packages, corporate employee benefit programs, and other distribution outlets.
Internet travel has grown and as a result, hotel
chains are taking steps to drive more business to their own websites, eliminating
the middle man. But hotelier friendly intermediaries like TravelHero, with
its superior technology and business practices, remain dominant in the
market due to its variety of products for hotels and DMO�s, and public
acceptance of its usability. |