Merchant Model - Pricing for Hotels for On-Line Agencies
May 22, 2012, 10:06 am
#1
Original Poster
Join Date: Apr 2000
Location: Toronto, Ontario, Canada
Posts: 3,665
Merchant Model - Pricing for Hotels for On-Line Agencies
I found a very interesting web site that summarizes operational details for commonly discussed in this forum
http://www.abestfranchise.com/suppor...odel-programs/
The web page explains some of the issues and tactics. The site lists typical discounts and mark-ups for the big agencies and strategies that are available. "A merchant model (MM) program is a non-commissionable negotiated rate offered by a hotel to a Travel provider, which is marked up for resale...The hotel’s brand may display to the customer or may be hidden until the reservation is confirmed (opaque)....The benefit of participating in a MM program is typically being listed on a high traffic site or getting priority placement on a site if previously listed with retail rates."
http://www.abestfranchise.com/suppor...odel-programs/
The web page explains some of the issues and tactics. The site lists typical discounts and mark-ups for the big agencies and strategies that are available. "A merchant model (MM) program is a non-commissionable negotiated rate offered by a hotel to a Travel provider, which is marked up for resale...The hotel’s brand may display to the customer or may be hidden until the reservation is confirmed (opaque)....The benefit of participating in a MM program is typically being listed on a high traffic site or getting priority placement on a site if previously listed with retail rates."
Last edited by B1; May 22, 2012 at 12:13 pm
May 24, 2012, 4:51 am
#2
Join Date: Jan 2011
Location: Cockeysville, MD, USA
Programs: None
Posts: 60
Nice find. Thank you for posting. Interesting to see how the example use case results in a benefit to the hotel (increased exposure/visibility), but no benefit to the consumer. (Of course, the target audience is comprised of hotels.)
Mike...
Mike...
