Customers, Distribution and the Hotel Industry
Article written by Tony Dessauer. Tony has over 25 years in hotel revenue management distribution and web strategies, focusing on Customer Acquisition and Retention. He has written the following article on customers and the importance they play in the hotel business in particular, and the way that hotels currently spend their budgets.
Not just pancake mix…
The pile of e-newsletters grows every day, so do the opinions and assessments of the way that the hospitality and travel industry is developing, all mixed in with advertisements and ‘insights’ from companies selling their wares, like a giant bowl of pancake mixture. The culinary proficient reader will be aware that such a mixture contains a lot of air; it helps the pancakes to attain a light and fluffy consistency. Similarly a high proportion of those articles and insights may also contain quite a lot of air, but they won’t be quite as useful in crepes Suzette! Unfair? Possibly, but if you read them, with the intention of gaining knowledge, you may be disappointed to find that the ‘wisdom’ is restricted to four or five lines of meaningful information and the remainder is dedicated to the ‘expertise’ of the Company and how you can’t succeed without them.
Anyway, back to the pile. The trend these days seems to be varied and the content likewise. Opinions vary as to the degree that the Internet is revolutionising travel and hospitality and the level of impact that will be seen, but all agree that the trend remains in a steep upward curve, continuing to climb and fast. An example of this is GetThere.com which published figures recently showing that growth in the 4th quarter of 2002 was 250% ahead of the same period in 2001. Please remember that GetThere is the Internet booking tool made available to the Corporate ‘bookers’ and ‘stayers’, who may traditionally have chosen the intermediaries using GDS to complete their transactions. And of course the latter part of 2001 was affected by the events of 9/11. Similarly to GetThere, Hotels.com, seen by suppliers to be both the saviour of their business and a devil to their profit, also grew substantially with their gross revenues standing at almost $946 million, an increasing of 76% in 2002 over 2001. Expedia, inc. another in the s
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