Destinations Marketing Organizations will find that a Central Reservations service is the most effective way to manage a destinations fulfillment and conversions processes – taking the demand that they generate and turning it into a trackable, measurable sale in the form of a reservation. A Destination Marketing Organization (DMO) is typically charged with taking tax and/or membership revenues and marketing a destination to create tourism demand. However, they often find that creating a measurable and track-able conversions process quite a bit more difficult because of the separation of tourism stakeholders (suppliers) and the DMO directly. An effective Central Reservations service can bridge the gap between the DMO and the tourism supply and help the DMO to solve the conversions challenge. A Central Reservations service can provide a DMO with a powerful tool to help: 1) Convert more visitors. 2) Target and Segment customers. 3) Reinforce the brand. 4) Become more effective marketers. 5) Increase tourism related revenues. 6) Decrease overhead and administrative costs. 7) More effectively serve their tourism stakeholders. 8) Better serve potential visitors. Learn more about the types of Central Reservations services and how Gateway Reservations can help solve your Destination Central Reservations needs. For more info, contact Kory Samson, Director of Sales and Marketing, by email at kory@gatewayreservations.com or by phone at 800.828.4228 ext. 305.

1. Kory Samson
Gateway Reservations

2.  Destination Management Organizations (DMO’s)
are charged marketing the destination to create
tourism demand.
◦ Unique attractions, scenic beauty and an effective
marketing strategy generate demand for our Southwestern
Destinations.
 The challenge that many DMO’s face is
how to effectively convert that demand
into tangible, measurable results.
 Another challenge is that once they
convert, how do we know what worked
and what did not?

3.  Converting demand is where many DMO’s don’t have
the resources or tools to track their own effectiveness.
◦ Historically, many DMO models market and then utilize a call
to action which simply provides a laundry list of tourism
suppliers (e.g. website, travel planner, etc.).
◦ This process gives up all control over the customer experience
and ability to track the conversion process.
 Many DMO’s utilize online booking engines – a software
solution that taps into a destinations supplier
availability to offer booking online.
◦ OBE’s have become a service standard in the tourism industry.
◦ However, a stand-alone OBE may be insufficient to manage a
DMO’s volume, conversion, and reporting needs.
 One of the most effective conversion tools for a DMO is
a comprehensive central reservations service.

4.  Central Reservations (CenRes) is a comprehensive
travel planning and reservations service.
◦ Provides a single call to action for a DMO’s marketing efforts
to increase conversions during planning stages and increase
awareness of the destinations offerings.
◦ Provides real-time access to rates, amenities and availability
of destination offerings.
 Provides a 24/7 online booking engine.
◦ Allows guests to compare options, convert at any time during
their planning process, and also automatically cross sells
visitors by offering activity and package options.
 Provides a professionally staffed call center.
◦ In 2011, more than 62% of revenues were generated through
the call center. Many people still want to talk to a real person.
◦ Call center services, on average, convert more than 45%
higher revenues per itinerary.
◦ Quote and booking follow-ups with an emphasis on sales and
closing.

5.  Create the ability to fulfill unique “packages”
utilizing any participating supplier.
◦ Packages provide a unique way to segment and target
destination offerings to new markets.
 Provides measurable performance and
conversion data.
◦ On-demand, comprehensive performance reporting to provide
valuable marketing tracking, research, and data.
 Other services can include:
◦ Group services, equipment rentals, ground and air
transportation, lift tickets, car/limo/shuttle rentals, spa
products, event tickets, dining and more.

6.  While there are a variety of software and service providers, a
CenRes is generally managed in one of 2 ways:
◦ DMO Managed
◦ Privately Managed
 Each provides unique benefits and challenges.
 Things to Consider:
◦ Budget Impacts –
 Not only the initial purchase of a solution, but the ongoing costs of
managing a service (staffing, phone systems, support, supplier
management, etc.)
◦ Fulfillment –
 How will payments be managed /dispersed and who will manage
product fulfillment, etc.?
◦ Cost / Fees –
 Free to all suppliers or pay-to-play?
◦ Supply Management –
 How do suppliers manage their rates, availability, etc?

7. 1) DMO Managed:
◦ The primary benefit to a DMO:
 Inclusive - Easiest way to include all suppliers and
tourism stakeholders.
◦ The primary challenge to a DMO:
 Cost - Most DMO’s operate on relatively tight budgets
which are primarily dedicated to marketing the
destination.
 Managing a CenRes requires significant administrative
costs of time and money – all of which cut into a budgets
marketing allocation.

8. 2) Privately Managed:
◦ The primary benefits to a DMO:
 Cost - These are paid for by managing company and
will be provided at little or no cost.
 Management – The management of the system,
fulfillment, reporting, etc. is managed externally.
◦ The challenges to a DMO:
 Including all tourism stakeholders – a privately
managed CenRes service is typically pay-to-play.
 This means that, inevitably, some suppliers will not
participate.

9. 1) Provides a Conversion Tool:
a) Gives a DMO a tool to convert destination
marketing efforts - taking the demand it generates
and converting that into measurable sales.
b) Converts visitors during their planning stages.
c) Provides convenient “One-Stop-Shop” to streamline
booking for potential visitors.
d) Creates a single call to action for marketing efforts.
e) CenRes can provide itinerary quotes by email so
guests can review, share, and call or click to book
when ready.
 All quotes and bookings are followed up on regularly to
increase conversion and maintain top of mind positioning.

10. 2) Provides a Segmentation Tool:
a) Allows the DMO to target and segment its
marketing efforts with unique package offerings
(e.g. Stay and Play packages, etc.).
• In CO, over 1.85 Million vacation packages were booked in 2008 – up
over 200% from the year 2000 which was at approx. 830K*
• In 2011, an average of over 65% of all bookings were in packages.
b) CenRes can customize and build packages on-
demand to suit the DMO’s marketing efforts
quickly and easily.
c) CenRes creates unified package offerings for the
community.
 Creates consistency when compared to individual, supplier based
packages which are hard for visitors to find and inconsistent in
offerings.
*Source: Longwood's Colorado Travel Year 2008 Final Report

11. 3) Helps a destination to position its brand and
add to the accessibility of its offerings.
a) Packages can help to reinforce the brand in the mind
of the visitor and relative to its competition.
 For example, if branding a destination as a family friendly
destination, a CenRes can build a package utilizing family
friendly options and use that as a call to action in marketing.
 Creating more experiential vacations also helps guests to make
the most of their vacation while reinforcing the brand image.
b) Qualify guests’ needs and to fit the customers
expectations and budget, making the destination
more accessible.
 Providing neutral recommendations based on needs and real-
time comparisons of rates, availability and amenities.
c) The customer has seamless access to lodging and
activity options in a single place.

12. 4) Helps to increase marketing effectiveness:
a) Providing comprehensive marketing reporting
 Standardized periodic reporting as well as customizable on-
demand reporting on performance indicators such as:
 ADR (Average Daily Rate).
 Call volume vs. Internet booking volume.
 Marketing sources – incoming phone calls are tracked providing
valuable information about marketing effectiveness.
 Revenue comparisons, avg. order revenue, avg. length of stay, top
geographical markets, sales by zip code and much more.
b) Enrich and enhance DMO’s Customer Database and
fulfillment requests.
 Guests can opt-in or out of marketing communications at
the time of sale.
 Guests can also easily request DMO travel planners.

14. 5) Can help to increase tourism related revenues:
a) Software tools and call center agents are able to
“up and cross sell” the destinations offerings.
 This keeps the guest in the destination longer, resulting in
more lodging tax, sales tax and supplier revenues for the
community.
 A private CenRes is a sales driven business, so the focus is
on increasing conversions and maximizing every sale.
b) By up and cross selling, CenRes is able to:
 Increase the average length of stay.
 Increase the average $$ spending per stay.
 Increase the frequency of return to the destination.

15. 6) Help to decrease overhead & increase
marketing spending:
a) A private CenRes can be a free solution for a DMO.
 This allows the DMO to maximize its budget allocations
to activities that generate demand.
b) CenRes facilitates guest requests for information and
increases sales conversion.
 This minimizes administrative time, overhead, and other
expenses by lightening the DMO’s call volume and
requests for information from visitors.
c) CenRes facilitates all processes.
 The DMO doesn’t have to manage updating supplier
availability or any of the fulfillment processes for
reservations or packages.

16. 7) CenRes provides an effective tool for suppliers to
incrementally manage yields and increase
revenues.
a) Incremental growth complements existing sales efforts.
 A Supplier’s marketing dollar should be spent to drive direct and repeat sales.
CenRes supplements that with new incremental business.
b) Suppliers maintain complete control of their participation and how
their product is presented to the customer including:
Availability Rates Policies
Photos Product Minimum Stay, Advanced
Descriptions Booking and more…
c) Levels the playing field for suppliers – Participating suppliers are
represented randomly, neutrally and fairly which allows those with
smaller marketing budgets to be represented along with larger,
more well known options.
d) CenRes can also help add to a suppliers product mix with the
opportunity to offer their own exclusive private packages and
online booking solutions.

17. 8) CenRes provides guests with a
comprehensive planning and booking tool.
a) Call center is staffed with Colorado local professionals that
provide unbiased and neutral information.
b) Customers simply enter their preferred travel
dates/preferences and they are given real-time
comparisons and availability based on the inventory that
suppliers have provided.
c) CenRes can also uniquely facilitate group bookings easily
for the supplier and group coordinator.
 Great value for wedding, family reunion and sporting event planners that
want to coordinate lodging and activity blocks but allow members to pay
separately.

18. Fees and Commissions:
 CenRes works on referral commissions from the supplier,
the direct beneficiary of our services.
◦ We have utilized this model for more than 25 years because it makes
us a vested partner in our suppliers success and allows them to only
pay for services when we produce measurable results for them.
 $75 Annual Listing Fee.
 15% commission on all stand-alone bookings.
 20% on all package bookings.
◦ From this, a 5% discount is passed on to customer (e.g. on a $100
room night, the supplier nets $80 and the guest pays $95).
 All reservations are 100% pre-collected and suppliers are
sent a check 14 days prior to the guests arrival.
◦ The commission includes all costs of collection (e.g. credit card
processing).

19. Call or email me with any questions:
Kory Samson
Sales and Marketing Coordinator
Kory@GatewayReservations.com
800.828.4228 ext. 305