Hoteliers have been rightfully confused by
the myriad of headlines about the changing landscape of hotel distribution,
from articles titled "Google will change your hotel's distribution
strategy" and "Facebook as a commerce engine," to "How to
make Twitter Sell" and "Mobile Apps to Impact Hotel Distribution."
In other articles OTAs provide "free advice" on "How to grow
your ADR without impacting occupancy," causing even more apprehension for
readers. On a daily basis, hotel owners, managers and operators are bombarded
by far-fetched and often conflicting messages and claims.
This special report aims to set the record straight: What are the most
cost-effective and important distribution channels hoteliers should focus on
today and what are the latest trends in hotel distribution the industry should
keep a keen eye on?
There is no doubt hotel distribution has changed dramatically over the past 16
years since the advent of the "commercial" Internet. Online
distribution, social media and the mobile Web have all changed how we connect
with, engage and ultimately convert customers. But the fundamental principles
of hotel distribution have not changed that much. Hoteliers need to focus on
distribution channels that "pass the litmus test" i.e.:
- Are cost-effective
- Generate the most bookings
- Protect rate parity and price integrity
- Reach the targeted customer segments
- The Law of unintended channel share loss
Not all bookings are created equal and when planning their distribution
strategy, hoteliers should realize the existence of "The Law of Unintended
Channel Share Loss" which stipulates the following:
Any booking via a more discounted channel (i.e. Flash Sales Sites like Groupon,
LivingLocal.com or SniqueAway.com or an OTA site, etc) is one less booking for
the same hotel via the hotel website, call center, GDS, or OTA (in that order).
The main focus and priority for any hotelier should be to sell as much
inventory via the most cost-effective distribution channels that can
potentially generate the most bookings, while preserving rate parity and price
erosion
the myriad of headlines about the changing landscape of hotel distribution,
from articles titled "Google will change your hotel's distribution
strategy" and "Facebook as a commerce engine," to "How to
make Twitter Sell" and "Mobile Apps to Impact Hotel Distribution."
In other articles OTAs provide "free advice" on "How to grow
your ADR without impacting occupancy," causing even more apprehension for
readers. On a daily basis, hotel owners, managers and operators are bombarded
by far-fetched and often conflicting messages and claims.
This special report aims to set the record straight: What are the most
cost-effective and important distribution channels hoteliers should focus on
today and what are the latest trends in hotel distribution the industry should
keep a keen eye on?
There is no doubt hotel distribution has changed dramatically over the past 16
years since the advent of the "commercial" Internet. Online
distribution, social media and the mobile Web have all changed how we connect
with, engage and ultimately convert customers. But the fundamental principles
of hotel distribution have not changed that much. Hoteliers need to focus on
distribution channels that "pass the litmus test" i.e.:
- Are cost-effective
- Generate the most bookings
- Protect rate parity and price integrity
- Reach the targeted customer segments
- The Law of unintended channel share loss
Not all bookings are created equal and when planning their distribution
strategy, hoteliers should realize the existence of "The Law of Unintended
Channel Share Loss" which stipulates the following:
Any booking via a more discounted channel (i.e. Flash Sales Sites like Groupon,
LivingLocal.com or SniqueAway.com or an OTA site, etc) is one less booking for
the same hotel via the hotel website, call center, GDS, or OTA (in that order).
The main focus and priority for any hotelier should be to sell as much
inventory via the most cost-effective distribution channels that can
potentially generate the most bookings, while preserving rate parity and price
erosion
BY ANIMA SINHA
PGDM 2 sem
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