TMCs want to see a move towards hotel bookings by credit card, arguing that the pre-paid voucher system used in this region is “outdated” and places too much pressure on agents to pre-finance clients travel.
Currently, most hotel stays are sold through consolidators, which issue clients with a prepaid voucher, then bill the TMC.
According to Tim Waddell, director of marketing Alshamel Travel: “Consolidators terms of credit are often much tighter than most TMC’s own and they act similar to BSP in many respects — cutting TMCs off if credit lines are overdue, leaving them unable to service clients’ hotel needs.”
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He added that booking hotels via GDS was quicker and easier and didn’t hold any liability for the agent. “Bottom line – there is no credit line/cash flow issues between supplier and TMC.”
But Naz Nizari, senior vice president, EmQuest said hotel bookings were generally not made through the GDS because it was easier to negotiate rates through a tour operator.
“The volumes booked through GDS aren’t that big mainly because tour operators can negotiate rates with hotels directly. The GDS doesn’t have that negotiation capacity.”
Dubai Marriott Hotels market sales manager – leisure and MICE, Maria Baxa, agreed that hotel booking should be online as it would “help the hotel and TMC with easy tracking”.
But she argued a virtual credit card was “too risky”, suggesting the use of a “code or reference number” instead. “The voucher system works for both hotels and TMCs and benefits both equally,” Baxa added.
Director of marketing and communications, Radisson Blu Hotel Dubai Deira Creek Stephanie AbouJaoude, suggested, “something similar to certain online systems that a few online American giants use for booking and reservations through virtual credit cards is the way to go for the overall travel industry’s payment method structure. This would both benefit hotels as well as agents as it is accurate, tracked and saves a lot of time and follow-ups .”
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