23 July 2009

Falling prices a chance to promote better rates

As an OTA, Orbitz does not have a lot of control over prices but that can be an advantage, says Orbitz Worldwide’s VP Revenue Manager Julie Szudarek. She said:
"In most cases, pricing is passed to us by our supply partners. However, we are greatly impacted by falling prices as commissions are frequently calculated as a percentage of price. We look at falling prices as an opportunity to promote great prices to our customers."
Falling prices provide customers the ability to try a destination or a room category that might previously have been too expensive.
"During the current economic downturn, we’ve actually seen an increase in the percentage of four and five-star properties sold versus prior years, as well as an increase in the length of stay," she said.
She attributed that to the "tremendous" offers Orbitz is able to offer. "Customers can afford properties that they otherwise would not have been able to afford," she said.
She suggested that using value-added ads can be useful but that they are often not seen as having value because of their real cost.
"At Orbitz, we’ve had the best luck using value ads where we can share the cost with a partner," she said. One example was to offer hotel purchasers a $50 gift card to a restaurant with a qualifying hotel purchaser.
Ms Szudarek is scheduled to speak at the EyeforTravel’s Travel Distribution Summit North America 2009 to be held in Chicago Sept. 16-17.
Report by David Wilkening