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Profitable Revenue Stream - Online Hotel Booking
The world of business has changed very rapidly. Business plans used to be built upon focus. With today's technology, that is changing rapidly and keeping up with the best practices demands an acute insight into online affiliate income.
Take for instance, HubPages. The income we earn and the income generated to the creators of this website could be even further enhanced by adding in hotel commissions. Do you need to know the hotel business? Absolutely not. Would it be helpful to understand the industry - most certainly.
Bookings.com and hotels.com among many others provide affiliate income for referrals. Why do they offer a hefty 10% commission? The industry is built around the travel agents commissions. Referrals mean gross sales and ultimately higher profitability. Gaining that new customer is expensive and the referral commission is recognizes the value of the new customer base.
What is new to the travel industry is the world of online booking. For you see, every website has the possibility of earning not just Google AdSense revenue but also hotel commissions.
Imagine in stead of receiving pay per click revenue, you now can earn up to 10% of the cost of booking a hotel room. With the average room rate at $80, you can see how quickly this can add up to substantial dollars.
Is this a million dollar idea? Most definitely for some website especially such as Hub Pages. We have the following, we have the forums for travel and yet we don't have widget that directly links hotel commissions to Hub Pages.
What does this mean for you and I as writers? Simply, this, we are leaving millions of dollars on the table.
What does this mean for your business? If you have the web traffic or have a large employee base, taking the time to consider running your own online travel agency could prove to be most profitable.
As you and I and every savvy business owner knows the world of business has changed dramatically with the interest, so too, must our outlook on multiple revenue streams.
Take this quick quiz to see if your business should delve into the analysis of the possibility of offering the online hotel booking widget on your website portal:
Online Hotel Booking
Take the Online Hotel Commission Quiz
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Business Scores and What They May Mean
Scores Above 58% - you owe it to yourself and your company to research the potential profitability of new affiliate income.
Scores above 80% - this is not a back burner project, this may be major money you are leaving on the table.
Scores above 90% - what are you waiting for? The dollars belong in your pocket - get started today!
OHRM stands for Online Hotel Reservation Management System
Types of Online Travel Widgets
There are widgets within the travel industry for everything you need. What is a widget? Widgets are independent programs that you can run on your website.
In the travel industry, you can add a widget for searching and obtaining car rentals, hotels, flights and even cruise deals.
The downside is many of these online reservations made through the website widget are non-refundable.
Friends Family and Employees - What You Need to Know
As a business, if you are running the hotel online booking widget on your website and you are earning a 10% commission, you should encourage your employees and their families to use your website's widget. Why? Because the profits return to you.
What is the downside you might ask? The downside is 1.) the universe for the number of hotels available in the online reservation system may be limited 2.) hotels that you normally would want to book at may require (and more often than not are doing this) a minimum 2-4 night stay 3.) rewards often do not apply with online booking.
Do the reward points really matter? Yes but not in a monetary standpoint. Often reward points are literally pennies on the dollar. For your employees who travel frequently, the taking away of reward points limits their benefits and while they may not say anything, to them, the prestige of the reward points means something.
Hotel Terms You Must Know
Rack Rate: The rack rate is the price a person pays at a hotel if he or she deals directly with the hotel instead of booking online.
Group Rate: the rate negotiated for multiple rooms - often in the quantity of 8 or more.
IATA: International Association of Travel Agents- also IATA is a numeric code is an identification code for travel agents.
If I had a website with substantial traffic such as Hub Pages....
If I had a website such as Hub Pages that writes frequently about travel...
If I wanted to increase my gross revenues and my profitability...
If I had a customer, fan base or large base of employees....
I would strongly consider the online booking widget to add additional revenues sources to my companies' bottom line.
Industry Improvements Needed
There are a number of improvements that are needed in the industry today - both for the group corporate agents and for the savvy online shopper. This is a discussion for another day and time.
Google's Online Revenue
The third largest is travel. Google has tried unsuccessfully so far to launch a product called Hotel Finder. If you visit their website, you might even see "beta" as one of the defining labels. They are attempting to make this product work and wish to have your input.