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Tech-savvy hoteliers cash in on new business strategies
In the hotel reservation business, infidelity can work
wonders!
Vivek Nayak |
Let's face facts. Times have changed …and how! In an
increasingly wired world, relying on a single distribution channel is clearly
asking for trouble. Hotels that refuse to adapt to the changing climate will
lose their market share to their techno-savvy competitors.
Sounds like an extremist statement? The fact is that the internet has dramatically
changed things. Today, when choosing a hotel, a destination, or even the mode
of travel, a majority of guests no longer head directly to the nearest travel
agent. An ever-increasing number prefer to search and source their travel requirements
directly from the Internet. This change in consumer behavior has made it necessary
for hotels to change their marketing strategy to be successful.
What smart hoteliers are now doing is expanding their distribution network to
include multiple channels - travel agents, direct-to-customer sales from the
hotel brand website, travel portal, GDS, IDS, etc. This will make their room
inventory accessible to the widest range of buyers; FIT guests, corporate entities
and travel affiliates.
Now here is a tip to go one up in this game. As a thumb rule, squeeze the channels
which bring you reservations at a higher cost and promote those channels which
do this at a lower cost. However, do look at things practically. For example,
room sales achieved by giving hefty discounts to third party portals may be
easy, but it also means your money is being put to use to develop their brands.
On the other hand, if you are looking at using your own hotel website to bring
in room sales, remember that though the cost per reservation is higher initially,
you will be putting in money to develop your own brand property which will give
you a higher rate of return in the medium run to long run.
So when it comes to bringing in reservations, like Casanova, play the field.
Woo multiple channels and manipulate conditions so that you get maximum returns.
The author is the director - operations at Avenues, the company behind ResAvenue,
India's most popular real time Online Hotel Reservation Engine.
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