12 November 2008

Hoteliers less 'lazy' about agent programmes, says Utell

Hoteliers are being more proactive about working with travel agents and travel management companies in the current economic downturn, according to bosses at Utell.

Speaking at World Travel Market, Ric Leutwyler, president representation services for Utellââ¬â¢s parent Pegasus Solutions, said Utellââ¬â¢s 11,000 hotels worldwide are now more keen to participate in its programmes.

ââ¬ÅâœWhen times are good there is always a sense of laziness about making the most of the opportunities that are available to them, but at times like these people realise they need all the business they can get,ââ¬~ he said.

ââ¬ÅâœHoteliers are now more actively looking at how they can improve their content and participate in our programmes with agents and TMCs. We are now seeing a much better response to our initiatives.ââ¬~

But he said although hotels were seeing occupancies drop, there were no immediate signs of rates falling.

ââ¬ÅâœSo far, rates are holding firm,ââ¬~ he said. ââ¬ÅâœPeople, at least so far, have learned from past errors and have avoided chasing the market down with rates. We have definitely seen a drop off in overall travel, particularly in certain regions, but some hotels are doing much more business.

ââ¬ÅâœIt remains to be seen what happens next. We are in for tougher times and I hope the industry can maintain integrity of rates.ââ¬~

By Bev Fearis

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• Agreed, rates need to hold.
  
  

  Hoteliers need to be bold and hold rates to avoid a kneejerk cost cutting war, especially as margins are thin enough. Unfortunately Travelodge are planning to cut rates which may well cause untold damage to the industry as a whole. Perhaps they can be made to reconsider?

  By Peter Shearn, Tuesday, November 11, 2008