30 May 2011

Hotels Trying to Emulate Airlines And Get Their Distribution Houses In Order

it is no secret (except to some mindless few) that the airlines have done a good job in managing the capacity to allow rises in yield.

Hotels on the other hand have not had it so good. They have been notoriously bad at managing the whole process of their capacity. The conflicting plethora of hotel distribution channels is enough to drive anyone batty.

However they do seem to have a better understanding. Whether they are doing a good job at it - is a matter of opinion.

According to Rubicon (now part of TravelClick) Hotels frequently see their rates undercut on the OTAs. While not intentional - rates on the major OTAs are $31 less than on the hotels websites so says the Washington Post.

Yet on the other side of the coin - GDSs garner higher rates than Brands websites. Perhaps this will explain why most OTAs dont use GDSs as the source for hotels.

Still the time is right for the hotels if they can control their inventory better to boost yields. Tougher to do than an airline. Particularly as we remain in a supply glut with no signs of that dissipating.

So still many options for the consumer. But the hotels need to continue to be vigilant in maintaining a better control on their rates. Let's see if the law catches up with them


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