Login
Password
Home | Contacts | Version française
 
         
   
News  
   
HTR Index  
   
Articles / Files  
   
Sectorial survey  
   
Subscription  
   
Candidates WHA  
   
 
  Edito    
     
  A Troublesome Trojan Horse    
  2010_04_1   
 

Until recent years, distribution was one of the compo­nents of the hotel industry’s economic model. While it is certainly important, it was fully controlled by operators who made their choices from among all possible channels depending on cost and services rendered. A first alarm sounded when, after the 9-11 terrorist attacks, hotel groups gave in quickly to panic about empty rooms and sig­ned outrageous contracts with online travel agencies. Realizing how late they were in terms of online distribution, hotel groups stepped up their pace to get up to par and regain control over their room inventory.

And yet, one might wonder whether lessons from the past serve any purpose. In the euphoria of the good years, online booking agencies regained their status as perfectly respectable partners, who gained a strong position in the profitability equation. Like a veritable Trojan Horse, they permeated the protective barriers of hoteliers’ margins. Well-established at the heart of the distribution system, online sales giants make hoteliers pay for their strength that has increased tenfold by successive takeovers of secondary players.

The win-win partnership is transforming itself into a dominant-dominated relationship. The nor­mal distribution cost, based on the added value of bringing new clientele, became a necessary ticket for simply gaining access to automated reserva­tions. Where is the justification for percentages that have risen exponentially in recent months? Has the client become such a rare commodity that it has become necessary to put the economic model’s profita­bility at risk?

Since when has a middleman been able to obtain more from the price of the room than the operator who guarantees the quality of the product and the owner who carries the financial risk? This logic is all the more dangerous because the disap­pearance of margins can only lead to two equally negative solutions: the progressive degradation of products due to lack of resources to maintain and renew them, or the massive in­flation of prices to integrate this increase in distribution costs. In the end, it is the customer who comes out the worse whe­reas he thinks he can find a good deal through online agencies that put pressure on hoteliers. Their speedy reaction is vital in order to renew the balance of relations without creating a des­tructive relationship based on demonstrating forces.


You can also download the article

 
Georges Panayotis
 

Back