Hilton To Spin Rates On Web

<B> Hilton To Spin Rates On Web</B>

By Maria P. Vallejo

<I>Los Angeles</I> - Hilton Hotels Corp. next month will begin beta testing a new technology that will allow travelers to directly book Hilton reservations on public Websites and still access their corporate transient and meeting rates.

Other mega hotel companies also are recognizing the potential of online reservations, and have plans to incentivize Internet bookings, personalize Web pages and compare cost savings between online and telephone bookings.

"I think we need to start looking at the value of digital service," said Mike Pusateri, vice president of interactive sales and marketing for Washington-based Marriott International.

Exemplifying the industry's interest in using electronic commerce to increase its revenue and improve guest recognition, Hilton has developed Ensemble Technology in conjunction with Ensemble Solutions in Santa Clara, Calif.

The technology will allow travelers to book Hilton properties through Websites related to their personal interests, such as sports, hobbies and destinations. This tool specifically targets travelers based on their preferences, and also is expected to capture incentive business related to certain activities.

Travelers soon will begin booking using the Ensemble technology directly through Hilton's central reservation system, allowing transient and group travelers to book their company's preferred rates through any site.

Beta testers within three weeks will be using the system for three to five destination sites. The program will allow potential guests, who log on to activity and interest specific Websites, to book Hilton properties that address those same interests. For example, golf fanatics can log onto a golfing Website, and find and book Hilton hotels that offer access to golf courses.

The program does not transport the Internet user to Hilton's home page. Rather, it allows the individual Websites to retain their visitors, giving Hilton better leverage in convincing other sites to offer its booking services.

Hilton also is using its guest history program to personalize its Internet service, which is expected to grow online bookings. Travel buyers will receive personalized greetings addressing them by their names upon entering the Website.

Incorporating its current guest history program, Hilton plans to use personalized discount advertisements based on the travelers' last stay at a Hilton location, while informing them of their Hilton Honors membership status.

"The Internet is becoming ubiquitous," said Bruce Rosenberg, Hilton's vice president of marketing distribution. "All travelers want to book on the Web. You can track this person through the site, know where they went last and market directly to them."

Hilton is not the only hotel company considering tweaking its Website. Last week, at the Hospitality Industry Technology Exposition and Conference in Los Angeles, Pusateri recommended offering cheaper rates for online bookings to increase business. Using online stock trading sites as an example, he warned hoteliers they must weigh the cost of booking on the Internet versus through the central reservation sites. "In most other industries, the Internet has a low distribution cost," he said. "We need to gauge whether there is a lower booking fee through the Internet than the 800 numbers."

While online bookings have been reporting 100 to 200 percent growth rates, the percentage of room revenue attributed to this distribution system is still significantly smaller than others. Bookings through global distribution systems reached an all-time high of 35.5 million in 1997, according to the Hotel Electronic Distribution Network Association's fifth annual GDS survey.

At the HITEC show, Ft. Meyers, Fla.-based South Seas Resorts, recently acquired by CapStar, said it plans to customize its Web page according to potential guests' position in life in order to improve its one-to-one marketing techniques. The site will recognize whether travel buyers are single, married or parents to determine what kind of trip they may be searching for. South Seas Resorts received 3 to 4 percent of its room revenue last year from online bookings, according to vice president of marketing and sales Salvatore Dickinson.

"The Internet and e-commerce have become part of the media mix," Dickinson said. "These customers have life cycles. If we know our customer to the best of our ability, then we have the basis to find other like customers."

Despite growing interest from buyers and sellers in increasing online reservations, hoteliers at HITEC cautioned the industry about using the Internet as a means of discarding distressed inventory. Referring to www.priceline.com, a Website that allows airlines to bid for customer business, hotel leaders said a similar Website focused on hotel reservations could result in the loss of pricing control. "My concern with the Internet is that it's becoming synonymous with distressed pricing," Pusateri said.