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Worldhotel-link.com (WHL) supports e-marketplaces for small hotels and guesthouses in developing countries. It provides local partners (franchisees) such as inbound tour companies or local hotel associations with a complete package to get their members online and selling rooms. Each locally owned and operated e-marketplace is linked up to a global network of emarketplaces and provided back office services by WHL.

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Worldhotel-link.com The Product WHL Business Model WHL Strengths Business Development Strategy

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The Product A “Family” of Sites Global Portal Country Portal

Destination Portal

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The Product How does it work? (customer view) Destination web sites. All with same look & feel and same functionality. Easy to move between destinations. Professional content, up-to-date

traveller interface

Independent traveller

Provides the interface between local hotel and traveller. Keeps content up to date, arranges bookings and other services such as tours.

Local hotel or guesthouse

Local back office

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The Product How does it work? (franchise view) Destination web sites ….kept up to date by local back office. All sites are linked.

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Back offices collect and maintain member information, process bookings and earn commissions. They are all linked and benchmarked.

Control panel accessed via the WHL site or local web site provides access to all tools, records etc. travellers

MySQL Database

Hotels

PDFs

WHL management team

Database supports all web content, plus booking system, record management and benchmarking Provide web marketing, web hosting, network quality management, loyalty programs, referral traffic etc.

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A look under the hood When the local booking operator logs-on they have a control panel to navigate to all of the WHL System. A screen shot is shown below.

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WHL Business Model. Revenues are derived from franchise fees - currently US$ 3,000 per site which includes portal construction and PPC work. Monthly service charges - US$400 per site minimum or $10 per hotel per month (whichever is greater) Consulting & Training (short – medium term) – work in developing countries with SMEs (e.g. e-marketing training, sustainability training, operational training / consulting, site assessments etc). This is work paid for by development agencies.

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WHL Business Model. MPO Scenario (median based on existing sites*). Average Room Rate: US$60 Average Length of Stay: 3 days Average Commission: 12% (range 8-20%) Average bookings / day: 4 Average Commission Income: $ 2592 / mth Average WHL charge $500 (20% of revenues) (* these figures vary widely dependent on destination ‌as do costs. It is expected that large destinations could earn significantly more than this over time).

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WHL - Strengths. Able to bring online many properties in the developing world which can’t get online any other way. Local “on-ground” presence in each destination allowing travellers to communicate (email, chat, Skype) with a local. Ability to provide “booking-on-demand” service for hotels and travellers (good in peak season when rooms may be scarce in ‘allotment only’ systems). Ability to offer special deals on rooms (non-published rates) Ability to customize other local on-ground services (transportation, tour guides, tours) to meet special needs of travellers. Tours are a particular strength given our network of tour operators

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WHL - Strengths. Supports multiple payment options (ranging from no credit card, local merchant account, offshore credit card processing) and able to be set by MPO on a hotel by hotel basis and season by season. Built in franchise management tools (benchmarking of all critical operations). Complete booking and business management package provided online for MPOs. Ratings systems for both service and sustainable travel initiatives. Tapping into the growing “geo-tourist” market …especially in the developing world The “ONLY” franchise model on the web today. Large number of established local tour operators around the world looking for a way to tap the independent traveller market. Need a trusted brand to work under. … ..... your local connection


WHL - Opportunities To tie up with strong global brands not having their own online accommodation booking service ….. either through an affiliate marketing agreement and/or equity participation (e.g. Lonely Planet, National Geographic Travel, Virgin Airlines, Rough Guides, Fodors, Frommers, AMEX Travel, Contiki etc.) To tie up with an existing e-marketplace player ….e.g. Expedia, Travelocity, Orbitz, Wotif, Lastminute etc. The WHL model is completely different to the existing “centralized” management model (a model which has no local presence and no ability to do booking on demand). We can also deliver up a global tour booking product to all these sites. To expand work with development agencies like the IFC, USAid, Ausaid, IADB, EU etc looking for a model which is proven in its ability to get SMEs online and has positive propoor impact and supports sustainable tourism.

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Business Development Strategy.

Keep building the network (Push MPO Sales) Focus on developing countries and do them very well. Leverage Other Brands – Affiliate Marketing Push Value of Local Back Office Push the Sustainable Tourism Program

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Business Development Strategy.

Keep building the network (Push MPO Sales). (The value to the traveller is in the network of sites we have and our local presence in every destination). Now 29 destinations in 19 countries Around 20 new sites to launch in the next 2 months in Indonesia, Laos, Vietnam, Slovakia, Latvia, Armenia, Philippines, Timor, Maldives, Kenya, Nevis, India, Pakistan, Macedonia, Slovenia, Sri Lanka, Costa Rica, By end 2006 we expect to have over 100 destinations live.

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Business Development Strategy. Focus on developing countries and do them very well. e.g. SAMOA Travelocity - 0 properties Orbitz - 0 properties Expedia – 2 properties Hostelworld – 10 properties. WHL – 44 properties

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Business Development Strategy. Leverage Other Brands – Affiliate Marketing. Leverage Local Brands …… e.g. local government and industry sites

Leverage Discount Airlines Brands

Leverage “Global Travel Brands” (e.g. Lonely Planet with whom we signed a global agreement Mrach 2006)

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Affiliate Marketing – Example Virgin (Polynesian Blue)

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Affiliate Marketing – Example Air Vanuatu / Qantas

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Affiliate Marketing – Example Lonely Planet

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Business Development Strategy. Push the Sustainable Tourism Program. Demand is there and growing and competition to WHL in this area is minimal.

WHL approach is new and innovative …. uses a branding approach …… does not require expert knowledge …..has a real focus on the traveller …..uses the Internet to drive demand …. is free.

Opportunity to tap development funding to drive uptake of sustainable tourism with SMEs. A win-win-win opportunity for accommodation providers, development agencies and WHL.

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