Global hotel distribution innovator, SiteMinder, today announced the launch of the much anticipated Room Distribution Exchange (RDX) – an industry platform allowing hotel systems and online booking channels around the globe to connect directly over the web without needing to use third party distribution intermediaries.
Speaking at the launch today of RDX in Baltimore, USA, at HITEC – the world’s largest hospitality technology conference – SiteMinder’s managing director, Mike Ford, said: “The launch of RDX ushers in a new era for online distribution in the global hotel industry. For a long while, the same systems have dominated distribution in the hotel industry without any significant innovation to differentiate them. Every once in a while, a technology ‘game changer’ redefines the way business is done in an industry, bringing higher efficiency, lower cost and greater control. For distribution in the hotel industry, RDX is such a technology product. This is a very appropriate time to be launching RDX given the importance of online and other emerging channels for hotels around the world.”
RDX allows property management system (PMS) and central reservation system (CRS) vendors, as well as hotel chains with bespoke CRSs, to operate and fully support their own branded distribution platform, providing full, two-way, seamless connectivity to hundreds of channels including online travel agents (OTAs), wholesalers, global distribution systems, and social media channels. The entire system is cloud-based and is as simple as a hotel system plugging into the exchange for instant, two-way, seamless connectivity to hundreds of channels.
Mr Ford added: “It was only a matter of time before online distribution for hotels became a commodity item. Technology barriers and process complexity have hindered this until now. RDX is the first real step towards establishing online distribution as a commodity because the platform shields the PMS, CRS and hotel chain systems from the complexity inherent in connecting hundreds of disparate systems, and allows them to operate the system as their own without third parties required to facilitate the connectivity. With the launch of RDX, it has become pointless for hotel systems to try and reinvent the wheel by each of them trying to build seamless distribution to hundreds of complex channels. They can gain direct distribution, effortlessly integrated with their own system, through RDX, much more cheaply and more reliably than they can do it themselves. Good distribution is extremely complex and expensive to get right, something that the majority of hotel reservation system vendors and hotel IT departments don’t have the expertise, time or resources to deal with.”
The major winners in RDX are PMS vendors, CRS vendors, hotel chains with their own CRS and booking channels wanting to gain direct access to hotel reservation systems. There are over 50 PMS and CRS vendors already plugged into RDX and over a hundred channels connected through a true two-way connection to RDX.
RDX allows PMS and CRS vendors to completely run their own branded distribution platform, thereby enhancing their product’s functionality, marketability and generating new revenue streams, while keeping a direct support relationship with their hotel customers. According to SiteMinder, the key is that there are no third party channel management service providers required as part of the picture. For hotel chains with their own CRS systems, RDX solves the complex issues when it comes to two-way channel connectivity.
Rather than manage a disparate network of relationships and connectivity partners, RDX gives hotel chains all the two-way connectivity they require via one platform, as well as the tools to manage the system as their own and centralise support for their own hotels without worrying about running the underlying technology backbone themselves.
RDX has already signed and begun implementing several major global technology players onto the platform, with the 2012 HITEC (Hospitality, Industry, Technology Exposition and Conferences) convention in Baltimore marking the beginning of a focused global rollout effort.