DALLAS -- One of the world's leading on-line hotel consolidators,
Hotel Reservations Network, went public on Feb. 24, raising nearly
$100 million that will be used for growth and acquisitions.
The company, based in Dallas, trades on Nasdaq under the ticker
symbol ROOM.
The Hotel Reservations Network sites, at www.180096hotel.com and www.hoteldiscount.com, have an integrated component
for travel agents.
Agents can receive commissions through the site by inputting
their IATA number. The drawback is that commissions are only 5%,
but Bob Diener, president of Hotel Reservations Network, said HRN
makes up for the less-than-standard commission in other ways. HRN
arranges to get block space with hotels.
For taking inventory off hoteliers' hands when business is slow,
HRN, in turn, gets access to rooms when availability is tight.
Diener said this means agents can find rooms in markets with
little supply, such as during a Super Bowl week or during the fall
in New York.
Rates, according to Diener, are generally pretty good, and HRN
pays commissions immediately on checkout at all properties
worldwide. The site is free of charge for agents.
"Agents can spend hours finding a room, and then they have to
take out the index and make call and after call," said Diener.
"With us, they can make one call and can immediately find rooms and
always get paid."
The company serves 31 domestic and nine international markets,
but Diener said that will be changing. Currently, HRN has access to
1,500 hotels in those markets.
The proceeds for the IPO will be put toward expanding the
company's infrastructure, according to Diener. The idea is to add
more markets and more hotels in each market.
And, like any respectable Internet company, HRN is looking to
make some acquisitions, specifically, "companies that do what we do
but on a smaller basis," said Diener.
"Lodging is a $100 billion business in the U.S., internationally
$230 billion, and our revenues were $160 million," said Diener.
"Even though we're the largest player in the consolidated hotel
market, we've barely scratched the surface."
HRN also has a host of partner sites that use the HRN booking
engine.
"When hotels work with us, it gives them coverage throughout the
Web, coverage they can't afford on their own," he said.
HRN also will be available through the CRSs "in the near
future." The site has become more functional of late, as the firm
added a customer service section where users can check out
information about their booking activity or cancel reservations,
among other things.
Visitors also can search for a hotel by a variety of categories,
including quality and price, and can view a map showing its
location.