TMCs slam hotels for direct sell campaigns
Travel management companies have launched an attack on the hotel industry for its high profile campaigns to promote direct selling.
The GTMC, which represents the majority of the UK’s business travel agencies, says direct sell tactics being used by hotels are undermining the B2B market, even though hotels say this isn’t the market they have an issue with.
"Hotel businesses may well have a distribution issue, but this is a challenge with OTAs and not other channels," said GTMC CEO Paul Wait.
"On behalf of TMCs we’re asking hotels to be clearer about where their frustrations lie."
He said many hotels are adding benefits and price advantages for direct customers in a bid to stop being undercut by online travel agents.
But they aren’t taking into consideration the impact on the B2B channel customers and corporate buyers.
"Our members are being told that the OTAs are the target and not the B2B sector. But the actions taken by hotel businesses do not distinguish between the two," said Wait.
"This blunt approach to solving a problem creates significant dissatisfaction with corporate buyers and TMCs."
He called on hotel brands to understand that not all distribution channels are the same, and that business travel agents provide a valuable service and important revenue.
He urged hotels to consider simpler methods, such as reducing supply to the OTAs and taking a more specific and targeted action that does not affect the corporate buyer.
"Direct sell is not the only route to success for hotel businesses," he said.
"Hotels are in danger of destroying their relationships with TMCs. In trying to reduce reliance on OTAs, hotels are being short sighted in not embracing the other channels that often bring higher value rates. That just doesn’t make good business sense."
The criticism came within weeks of Best Western launching a campaign encouraging customers to bypass agents.
It’s ‘Better Book Direct’ campaign tells consumers they can get the lowest prices by booking on its website, via its call centre, or direct with hotels. Best Western is also now giving special ‘Rewards Rates’ for direct bookers who sign up to a loyalty scheme.
A spokesman for the GTMC said it was just one of a number of campaigns being promoted by hotel groups.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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