Hotel Distribution Challenges – ehotelier

ehotelier – Hotel channel distribution challenges: how real-time analytics can help.

Cost of Distribution Rising Faster than Revenue

According to this articles the latest studies by travel trade associations show that the cost of distribution is rising sharper than revenue. It recommends that Hotels look closely at their own performance statistics and avoid distribution channels that don’t preform well and cost too much.

These days, third party distribution channels have cost implications as well as brand consideration that go beyond the benefits of a booking channels. Some cost as much as 35 percent of the hotel room revenue and all tend to commoditize the brand to a large extent. See AXSES newsletter on branding consideration in OTA channels.

Harder Choices – More Collaboration Needed

The combination of traditional channels, such as the Global Distribution Systems (GDSs) and voice/walk-in, plus the diverse online channels of OTAs, metasearch and social-media, have made the task of getting the most profitable distribution mix for the property type more challenging than ever.

It is important that distribution, marketing and revenue work together to understand how developments across the various channels can affect the hotel’s revenue management, pricing strategy, brand integrity and ultimately profitability.

So what are some of the key challenges facing hotel operators and how can real-time search monitoring be used to address them? We have identified four key ones that can be addressed with real time data.

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10 Travel Agent Trends that are Impacting Hotels

Travel agents love hotel websites.

This report list 10 trends that effect the travel professional. Benchmark Hospitality International reports on a commissioned study of over 20,000 travel professionals.

Note Trend #3 – Agents customers are increasingly bypassing the agents and booking directly. TAs see this as the greatest potential negative effect on their business in 2014.

And Trend #8 Hotel Websites with an attractive, appealing and user-friendly website with a direct booking option generates reservations. What is interesting is that travel agents use this method 34% of the time for making reservations (GDS is 38% of TA bookings).

You can toss your fax machine, though; it’s used for bookings only 1% of the time according to the study.

See all Here .

Hoteliers learn from Airbnb & HomeAway

Hoteliers learn from Airbnb, HomeAway.

Americas Best Value Inn, sees Airbnb as an alternative channel to sell rooms. With 80-rooms, Americas Best Value Inn and Suites Tukwila/SeaTac Airport in Washington is not your typical Airbnb client. Kyle Lawrence, sales and marketing manager for Americas Best Value sees it as just a different way to reach potential guests.

“I thought … we can treat (Airbnb) kind of like an (online travel agency). … And it’s just another way to differentiate yourself and get out there,” he said.

It’s an easier than OTAs he says “because … I have a one-on-one conversation with the person. With an OTA, it’s just somebody paying and coming in. But in this case, I’m able to get a complete understanding of what their needs are”.

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