There has been recent criticism of the Select Registry/SynXis partnership, an alliance that will enable Select Registry to offer online reservations on their website and SynXis to provide optional Global Distribution System (GDS) reservation services to Select Registry members.
RezStream believes that some of this criticism is misleading and biased.
The agreement between Select Registry and SynXis does not require any Select Registry member to exclusively use SynXis as their online booking engine; nor does the agreement mandate that Select Registry members sign up for the optional SynXis GDS services or use the SynXis booking engine on their individual property websites. SynXis is simply providing options, which innkeepers can utilize if they desire. Nothing is mandatory and inkeepers can keep their existing booking engine on their own website.
What is factual is that SynXis agreed to give Select Registry members a very competitive, low per reservation fee for bookings made directly from the Select Registry website. The SynXis booking engine also offers advanced features that many booking engines do not possess. For example, the SynXis booking engine features many more options when it comes to online rates, packages, etc. than most other products. The SynXis booking engine can also “auto schedule” followup e-mails to enhance roi even further. This means that conversion rates should increase for for properties that are bookable on the Select Registry website.
What does this agreement really mean for Select Registry members? It means that members of this organization will have a world class booking engine on the Select Registry website at a very affordable price. In addition, Select Registry was able to negotiate a special price concession from SynXis to help market the Select Registry website in the future. That is just good business on the part of Select Registry. SynXis should also be credited with its flexibility in forging this special business arrangement.
Learn the facts about Select Registry and SynXis:
- Select Registry members can choose their SynXis services.
(Every service is optional and innkeepers may mix and match which services they use)
- Fees for using SynXis are very similar to what other GDS providers charge.
- The SynXis booking engine is more robust and will convert more customers.
It is interesting to hear people proclaim that SynXis GDS fees are too expensive. First, SynXis does not solely control GDS fees. Secondly, other companies have their own long list of fees and push expensive “direct connect” programs that average 25 to 30% per reservation made. Why pay expensive direct connect fees when you can pay less? While the average GDS booking lasts two to three days, the SynXis retail price model is almost always cheaper than more expensive direct connect or “net rate” programs. In addition, why not get exposure on many websites, not just one or two? That’s what happens when properties use SynXis.
The truth is that SynXis GDS rates are very similar to what other GDS providers charge. SynXis is being unfairly singled out lately by negative comments being posted on industry blogs. The truth is that SynXis is very similar to all other GDS providers; SynXis just has a better product with more options for its users.
The only downside is that SynXis has slightly higher monthly support costs than some other GDS providers. However, since their services offer many more options, the added support costs are worth it for most Select Registry members. Coupled with a property management system (PMS) that can handle availability updates and reservation downloads, (like RezStream Professional PMS), the SynXis system is a great product that should increase your overall online revenue.
GDS booking fees are primarily controlled by the travel websites, travel agencies, and by the GDS technology providers. While you may find slightly lower GDS monthly fees, SynXis offers a great product, with flexibility, to innkeepers who are looking for a complete line of reservation services.
For more information about the Global Distribution System, read RezStream’s article regarding the history and benefits of the GDS.
It’s totally ridiculous to think SynXis and Select Registry can control GDS rates. I used to work for SynXis managing all of these connections and there is no possible way to control GDS rates through them. There are many places to buy hotel reservations from, and the GDS system is much, much larger than anything either company could ever control. Over 75% of travel bookings still go through the GDS globally which amounts to billions and billions of dollars. I’d like to see how somebody thinks it’s possible for two small companies to control that entire market!