Patrons:

1. Patrons: Amb el suport de: Booking engines for direct selling and electronic distribution in the tourism sector Poznan, 22-23rdJune 2006

2. System for the on-line management and publication via Web of hotel seats on a real-time basis. This system will allow us to match daily hotel offers to the market needs without intermediaries. The access to offers is done through a B2C portal, which compiles the information of all hotels into a service directory. It is able to manage a great variety of hotel requests such us hotel category, hotel placement, hotel names, hotel services, hotel offers, etc.

3. Origins AvantHotel was initiated in March 2002 with the support of the Asociación Hotelera de Menorca – ASHOME, who participated in the different phases of the project, as an end user. AVANTHOTEL has been executed with the financing from INNOBAL XXI, specifically in the Action 2: “Support to the Innovation in the Hotel sector”. INNOBAL XXI is an initiative of the Conselleria d'Innovació i Energia y la Conselleria d'Economia, Comerç i Indústria (Govern de les Illes Balears), subventioned at 50% by the European Union, through the FEDER Funds.

4. Overview

5. Advantages • Hoteliers • Publishing and Management of the Inventory. • Possibility to create their own kind of room and accommodation units. • Possibility to manage their own information in real-time (facilities, descriptions, pictures…). • Rates Management by accommodation units. • Rates and inventory control, booking management. • Pre-Payment through a Payment Gateway. Deposit income into the Hotel’s Bank Account. • Clients • Search of availability criterias: Price, geographical (tourist areas), dates, establishment types and accommodation units. • Secure Payment of deposit (% booking) through a Payment Gateway, for each hotel. Real-time confirmation of the payment. • Multilingual System (6 languages defined).

6. Strategy • DMO (Regional or National Tourism Promotion Agency) • Promote the destination by means of the TIS • Co-ordinate Marketing actions with Hotel Association/Federation • Co-ordinate the contacts between Hotel Association/Federation and Operators. • Hotel Federation/Association • Increase the Hotel’s sales • Implant a self-sustainable model • With enough critical mass (Hoteliers), negotiate deals with the operators to reduce the commissions. • Hoteliers • Reduce the traditional commissions impact. From margins between 20-40% (TT.OO. and TT.AA.) to 4-8% (Direct selling). • Direct commercialisation with no intermediaries • Diversify the distribution channels

7. Business Model • Start-up Project PUBLIC OR PRIVATE SUBVENTIONED • Technological Implantation • Payment Gateway (Bank) • Training Hoteliers • Law Issues • Product Exploitation SELF-SUSTAINABLE MODEL • Income based in Selling Commissions (8-10%) • Hotel Association/Federation invest the income in Promotion (65-75% Commissions) • Technological Partners maintenance (25-35% Commissions) • Hotel Association/Federation and DMO support to promote and negotiate deals with the operators

8. Check Listto Implant an AvantHotel • DMO involved in the project • Political and Promotional Support to the Association/Federation. • Legislate the Pre-Payment and Cancellation Politics. • Hotel Association/Federation to recruit and exploit (the owner) • Non-Benefit objectives. The objective is for the Hotelier to improve their sales. • Income oriented to Promotion: Web Positioning, Advertisement Campaigns… • Set the rules: Pre-Payment and Cancellation Politics. • Technological Partner • Regional Partner: Training, Second Level Maintenance (Contact with Hoteliers), Payment Gateway selection. • Spanish Partners: First Level Maintenance, Payment Gateway Integration, Application Hosting, Future Improvements. • Bank Institutions • The Hotelier decides which Bank to work with. • Debit and Credit Cards allowed. Important to select the right Payment Gateway (the Bank Institution must provide the PG with online payment confirmation).

9. Case Study:The Balearic Islands (I) • Menorca • Minorcan Hotel Association (ASHOME) http://www.menorcahotelsguide.com • Ibiza • Hotel Business Federation of Ibiza and Formentera (FEHIF) http://www.ibizahotelsguide.com • Formentera • Hotel Business Federation of Ibiza and Formentera (FEHIF) http://www.formenterahotelsguide.com • Mallorca (started last March) • Majorcan Hotel Federation (FEHM)http://www.mallorcahotelguide.com http://www.avanthotel.com • - Promotional Support: INESTUR (Balearic Islands DMO) • Technological Support: Fundación IBIT

10. Hotels** Registered 2006 Portal Visits Bookings Billing 2004 2005 Forecast 2006 2005 Forecast 2006 2004 2005 Forecast2006 2004 Menorca 160 153.323 264.531 700.000 776 1.521 930.244 € 2.500.000 € 481.064 € 5.000 Ibiza 164 286.287 308.619 400.000 813 1.650 3.000 392.508 € 787.460 € 1.500.000 € Case Study:The Balearic Islands (II) • Statistics* of AvantHotel in Menorca and Ibiza * Multiplier Effect (5 times) not measured ** Approximately 2.700 accommodation establishments, as total offer in the Balearic Islands *** Mallorca Hotel Federation counts with approximately 1.000 associated hoteliers

11. Innovation Support R+D Promotion and Dis. Inf. Society Public Admins. Tech. Centres Research Ins. International Trends Enterprises Tech. Centres Know-How Know-How Enterprises Society Feed-Back Regional Transference Model ……IBIT Foundation's mission is to line up with the political guidelines of Innovation Technology defined by the Ministry of Innovation and Technology of the Balearic Government to narrow the gap of the New Technologies of the Balearic Society………. AvantHotel Homologation Process • Open to all the ITC “Regional Enterprises”. • Up now 8 enterprises have been homologated. • Process includes the source code transference and the capability to exploit the product • Each enterprise is in charge of a part of the development. • Homologated enterprises leads the expansion in other regions. • Continual feed-back between: hoteliers, TIC enterprises and R+D+i bodies.

12. Expansion AvantHotel Homologated enterprises leads the expansion plans • America • Chile and Costa Rica • Europe • Central Europe: Czech Republic, Hungary, Bulgaria and Rumania • Mediterranean: Italy (Provincia di Rome and Sardinia), Greece (Athens, Crete and Dodecanese), Portugal (Vila Real),

13. AvantHotel is in continual development • Distribution Channels (DC) • Travel Agencies (TT.AA.) • Tour Operators (TT.OO.) • Global Distribution Systems (GDS) • Alternative Distribution Systems (ADS) • Digital Terrestrial Television (DTT) • Dynamic Packing (DP): • Flight + Hotel + Rent a Car + Services • Yield Management (YM) • Improve the price through the Distribution Channels • Enterprise Resource Planning (ERP) • Integration of a Simple Hotel Management System • Interoperability with ERP

14. Basic Model of e-Business Government G2B G2C B2G C2G B2C Business Consumer C2B E2E B2E E2B C2C B2B Employees

15. Hotel AvantHotel (Inventory) Hub (GDS) TT.AA. TT.AA. TT.OO. DTT Direct Sell Alternative Distribution Systems (ADS) Distribution Channels (DC)

16. B2B B2C AvantHotel B2E Channels Switcher B2B Back Office Front Office Distribution Channels Distribution Channels (DC) • Maximize the sell: • Publish the offer in as many points of sell it would be possible. The hotelier always must control the “price”

17. B2B B2C AvantHotel B2E Packetizer B2B B2B Back Office Front Office Distribution Channels External Sources Dynamic Packaging (DP) http://www.turismoformentera.org

18. B2B B2C AvantHotel B2E YM Module B2B Back Office Front Office Distribution Channels Yield Management (YM) • Maximizing profits from the sale of perishable assets: • Hotel rooms by controlling the price and inventory, and improving service through the sale channels

19. ERP B2E B2B B2C AvantHotel Back Office Front Office B2E ERP Embed Enterprise Resource Planning (ERP) • Manage the hotel information and inventory over AvantHotel: • - The hotelier can control the hotel information (pictures, information, facilities, etc..) • Manage the inventory (publish the offer) • Some basic hotelier functionalities as Check in/out, Billing, etc..

20. Basic Model of e-Business Government G2B G2C B2G C2G B2C Business Consumer C2B E2E B2E E2B C2C B2B Employees

21. Patrons: Amb el suport de: Thanks for your attention Poznan, 22-23rdJune 2006