Greenalls plans expansion of Internet sales channel

The Internet is set to become a major means of selling rooms for Greenalls' Premier Lodge chain.

Speaking to Caterer at the conference, Paul Dermody, chief executive of Greenalls' hotels and leisure division, said distribution costs currently took as much as one-third of a lodge room rate.

This is because the current method of travel agents selling rooms through the global distribution system (GDS) incurs several commission fees.

Mr Dermody said the Internet would reduce this cost dramatically, to 5-10% of the room rate.

"I think the lodge market is the ideal market for the Internet. The GDS is too expensive," said Mr Dermody. Travelling salespeople especially would be able to book rooms directly over the Internet.