Barter of America Works With ...
The Travel & Hospitality Industry
you ever think that When today ends, the revenue from an unsold
room, rental car, airline seat, cruise cabin and more is gone forever?.
The hospitality industry trades in some of the most perishable inventories
in any industry. An unused room, cabin, car or airline seat loses
its revenue potential immediately. But what if you could take a
75% occupancy rate and boost it to 90% or even 95%? You can.
You can never make up the revenue of a lost room night, airline
seat or berth. However, you can use barter to expand your cash budget
by using available inventory as currency in exchange for media services
or merchandise that you would buy for cash if you have the budget.
What’s more, other Barter of America clients can utilize those
services as part of their transactions.
Barter affords the opportunity NOT to discount your inventory,
or lose a sale, while increasing revenue. The transaction allows
your company to achieve higher occupancy and average rates with
the prospect of repeat business. Barter also results in increased
profit from cash flow savings, incremental revenue and reduced marketing
By trading available rooms, cabin or seat inventory for the same
media, capital expenditures and business services they are prepared
to buy for cash, hospitality providers can maximize revenue potential.
Since virtually all costs are being charged against current capacity,
what’s being added is almost pure profit.
Clients acquiring travel inventory as part of corporate trading
transactions can use their under performing assets to pay a portion
of the cost of sales meetings, conventions and a host of other business
Travel & Hospitality Case
A manufacturer regularly holds an annual sales meeting for 500 employees.
For its 2001 meeting, the company has decided to gather at the Crown
Plaza Puerto Vallarta. The budget for the meeting, including airfare,
hotel accommodations, transfers, food and beverage and meeting space
requirements is $1 million.
We Provide Solutions
As a result of working with Barter of America to set up the meeting,
the client was able to pay for a significant part of the meeting
with Barter of America Tdlls, received when they had traded excess
inventory to Barter of America.
The cash savings in this case is significant. The client is able
to use underperforming assets to fund the 1999 sales meeting. Without
being able to use their trade credits, the client would have either
needed to change the location of the meeting or absorbed the cost
of the event on an all cash basis.
The barter process is relatively simple. For a 300-room property
running an 80% annual occupancy with a $200 average daily rate,
$4,380,000 of potential revenue is not being realized. By bartering
10% of the available inventory, the property can gain more than
$400,000 worth of advertising services without displacing cash business.
This results in a significant increase in profit that will impact
the hotel's bottom line.
If your company is not achieving full capacity, you have the opportunity
to use available inventory and receive full value towards services
on your wish list that you would pay cash for, if you had the budget.
Travel & Hospitality Trading Strategies
Today’s travel suppliers often find themselves in a competitive
environment which can force them to drastically discount their products.
Slashing both business and leisure travel prices has contributed
to the industry losing the value of its own services. That value
can be realized when the industry fully employs effective methods
of maintaining price integrity while stimulating and satisfying
By implementing programs, which utilize long established corporate
trading techniques, travel providers have an alternative to distressed
cash transactions. Through the use of barter credits, airlines,
hotels, car rentals and cruise lines can recover the full value
of their excess inventory.
Corporate barter transactions effectively eliminate the need to
discount a seat, room, cabin or car. By viewing slow selling travel
inventory as excess inventory, companies can benefit from effective
corporate barter trading programs.
BoA Serving The Travel & Hospitality
Barter of America Travel Services provides a host of worldwide
travel products to clients. By using excess inventory to reduce
the cash portion of the expenditure, clients have worked with Barter
of America to plan conventions, sales meetings, incentive programs
(check our partner www.mycityponts.com)
and business travel.
Travel trade availability's include worldwide hotels and resorts,
car rentals, cruises and airlines. Many clients achieve significant
cash savings in their business, promotional and personal travel
throughout the world through Barter of America Travel Services.
Entering into a barter agreement with Barter of America enables
- Use available inventory as currency
- Support the sales effort with a targeted media campaign
- Bring new business that does not conflict with your cash customer
- Impact low season and gap periods with tactical advertising
campaigns and barter customers
- Increase rate and awareness with a consumer campaign to drive
- Finance capital improvement and other FFE costs
- Handle an unexpected dip in occupancy
Save cash, increase profit!