THE ABC OF ELECTRONIC DISTRIBUTION

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Channel Management (also Multi-Channel-Management)

Channel management refers to the employed distribution policy of a hotel or chain. Due to today’s multitude of sales channels, this management method includes content management as well as data reconciliation in various distribution channels such as CRS, GDS and 3rd party websites. The core of the process is the management of room rates and availabilities across all channels.

CMS (Content Management System)

A CMS is a computer application used to create, edit and manage various content types and data. For websites, Typo3 is a common CMS system; for GDS content loading, Lanyon and Trust Content are among the well known CMSs.

Consortia Rate

Consortia are corporations, syndicates, franchises or business travel agent chains such as American Express, Carlson Wagonlit, BCD Travel or HRG. The consortia rate is negotiated between the hotels and travel agencies and is only available to contracted consortia.

Content Management

This is a general term for management and revision of static and non-static hotel information (e.g. rates, terms & conditions, hotel descriptions, photos etc.) in the different distribution channels.

Conversion Rate

This rate describes the percentage of website visitors (lookers and shoppers), which actually turn into buyers after using a website clicking on an advertisement.

CPC (Cost Per Click)

Is a common commercial business model for online marketing activities. Each click on a particular advertisement has to be paid to the service provider (cost caps are possible in most cases).

CPL (Cost Per Lead)

Is a commercial business model for online marketing activities. Advertisements are paid per sales lead. This model is common for advertisements aiming to increase recognition and first customer contacts – it is less aimed to increase direct bookings.

CPM (Cost Per Mille)

This term defines the price for an advertisement reaching a total of e.g. 1,000 people.

CPO (Cost Per Order)

CPO is a mathematical calculation of the costs incurred in selling an item (e.g., room) divided by the number of orders received (e.g., room nights). It is used to examine the relative profitability of various promotions. The CPO ratio can be used to evaluate the effectiveness of advertising expenses.

CRM (Customer Relationship Management)

CRM is the method and concept being used to manage customer relationships, e.g. with guests or a qualified set of guests. CRM is used for targeted customer communication and customer engagement, and requires that all customer data and customer interactions/transactions are saved in databases. The data is integrated/processed within the company and used for special purposes such as mailing campaigns and personalized promotional offers etc.

CRO (Central Reservation Office)

There can be a single or several central reservation offices within a company which handle telephone reservations through a central telephone number. The CRO of a hotel chain is capable of booking hotels in different destinations with one single call. Forwarding of the booking is mostly carried out via a CRS and/ or PMS (also see CRS and PMS).

CRS (Central Reservation System)

The CRS is essentially a database distribution system, providing hotel room rates and availability for many different channels such as the GDS, 3rd party websites and brand websites etc. Among other functionalities, the CRS can administer room allocations of single properties or on hotel chain level. Furthermore, rates can be controlled and availabilities in the distribution channels can be monitored. The CRS of a hotel chain transfers data to the distribution channels.

CTR (Click Through Rate)

This online marketing parameter shows the average number of “click-throughs” per 100 ad impressions (measured in %). For example, if an advertisement generates 100 impressions and only 1 click is generated by shoppers, the CTR is 1%.

CTA (Closed to Arrival)

Revenue Management restriction for room availability: reservations starting their stay on that particular day are not possible.

CTD (Closed to Departure)

Departure on a particular day is not possible.

Commission

Travel agencies charge commissions (usually in % of the room rate) for selling hotel rooms.