Prestigious hotel group Rydges has turned to the Internet to auction spare hotel rooms and suites in its Australian and international properties.
The decision could see last-minute travellers reaping significant discounts for accommodation in Australian and New Zealand cities, and even the Australian group's Dubai hotel.
-We were mindful of a discount mentality and what that could mean to our business, Rydges marketing services manager, Robin Harrigan, said. However, the group believes online auctions will not affect its primary business.
-Utilising excess inventory does not erode mainstream business," she said. In fact, -it's one of the more innovative approaches" to an issue encountered by hotels worldwideââ,¬"maintaining room occupancy levels. The proportion of hotel rooms not in use at any one time depends on many factors, Harrigan said, although there are some predictable low times.
Rydges will auction unbooked rooms through Yahoo! Australia's online auction service. The hotel chain's participation is a coup for Yahoo, as the Web guide prepares for battle with a host of online auction houses.
Newspaper publisher Fairfax is the latest entrant into the Australian auction market, with the launch of sold.com.au ââ,¬" a joint venture with US company Classified Ventures.
In recent months sites such as stuff.com.au and Ibuy.com.au have also joined the fray. Meanwhile, Kerry Packer's eCorp is also expected to launch a local online auction service through its partnership with US Net auction giant eBay.
Rydges will restrict its initial online offerings to weekend bookings for the leisure market and guests will -never pay above market price".
However, in future there could also be the chance to auction special deals to the highest bidder. -We'll have the opportunity of a lifetime next year, to build up our brand presence," Harrigan said. The chain could improve its impact in the US market if hotel branding was part of strong online marketing during next year's Sydney Olympics. Rydges is currently preparing its Web site and has long term plans for customisation applications.
The hotel chain is also in the middle of rolling out a new integrated front office, property management and reservation system across the entire group.
-The Internet strategy is the public face of it all," Harrigan said. -We'll probably be one of the only chains in the world where they all have the same system."
