A two-part article taking a look at the wholesale/bedbank distribution environment to see where improvements can be made or opportunities are being lost that impact profitability. We’ve produced a calculator to identify the potential.
Part One introduces the calculator to identify your potential while Part Two looks at example calculations showing real-world savings.
Part One of this blog looked at why its a good idea to check out your potential savings from applying the insights gained from API analytics using our simple RoI calculator. This article pesents some solid and experienced-based use cases and ROI calculations based on the operations of a mid-size bedbank, which has search traffic of 10 million requests per day, a look to book of 10,000 to 1 (equates to 1,000 boookings a day) with an average booking value of £500 and a margin of £100. Using Trio Express Think Big drove the following improvements and revenue growth:
- Think Big reduced their system timeouts down from 1% to 0.1%
- Before: (timeouts @ 1%), lost booking per day = 10
- After: (timeouts @ 0.1%), lost booking per day = 1
- Incremental profit: 9 Bookings per day @£100 = £900 per day
- Incremental profit in per annum = £328,500
- By closely monitoring and alerting on customer cut-offs, Think Big reduced customer cut-offs by a factor of 10 for its largest channel. For Acme its largest channel equates to 10% of all bookings.
- Before: I hour per day of large channel cut-off
- After: I hour per 10 days of large channel cut-off
- Incremental bookings: 9 hours of large channel bookings in a 10 day period
- Incremental bookings per annum = 9 x 1,000 x 10% / 24 x (365/10) = 1,369
- Incremental profit per annum = £136,875
No product available responses
- By closely reviewing mappings, sourcing and other factors, Think Big were able to drive no product available responses to searches from 25% o 20%.
- Before: (no availability responses of 25%), bookings per day = 1,000
- After: (no availability responses of 20%), bookings per day = 1,067
- Incremental profit: 67 Bookings per day @£100 = £6,700 per day
- Incremental profit per annum = £2,445,500
Response Times & Aborts
- An abort is when an agent’s system times you out because your systems have taken too long. You lose the business.
- By managing the size of responses Think Big was able to reduce average response time down by 25% and aborts from 2% to 1%.
- Before: (aborts @ 2%), lost booking per day = 20
- After: (aborts @ 1%), lost booking per day = 10
- Incremental profit: 10 Bookings per day @£100 = £1,000 per day
- Incremental profit per annum = £365,000
You can read more about these use cases in our White Paper “5 Key Metrics every Hotel Distributor needs”
Use Your Numbers With Our Calculator
To accommodate your distribution needs, tools such as robust booking systems or external API connectivity are absolutely necessary. Look to book” and server loads are important issues. So do you know how well your systems are performing? Are you missing opportunities to sell inventory? Are you even aware of potential losses to your bottom line?
To help you answer these questions, we’ve introduced a quick RoI calculator to identify the annual financial potential of some simple operational fine-tuning. To see in seconds what the financial benefit of some simple adjustments might be for your organisation, just complete the three step process: