Getting your hotel visible in the fast-moving world of the Internet is what a global distribution strategy is all about. It’s increasingly the best way to get your hotel rooms in front of the right customer, at the right time, for the right price.
While there are a number of advantages of weaving your hotel into the worldwide web (easy transaction processing with instant confirmation, customer information capture, and demand management), all this new technology may come with a few unexpected drawbacks, particularly if you rely too much on one online reservations channel.
Commissions and Transaction Fees Eat Profit Margins
Putting all your marketing eggs in one distribution channel basket may fill more rooms, but at what cost? Sites like priceline.com and booking.com use one criterion to lure customers: rock-bottom prices. But is the lowest price always the right price? Not for your target customers—the ones who would have been willing to pay more for the right mix of service, value, location, and amenities.
Worse, offering the lowest price doesn’t always get your hotel front and center on a potential customer’s search results. That’s right—these sites want hotels to pay a premium commission rate for that privilege.
Giving Up Control Over Customer Relationships
In addition, they may withhold vital customer data that prevents you from establishing the bread and butter of hotel management – personal contact.
GDS Ease of Use
When considering making a hotel global distribution system a part of your strategy, don’t forget to examine how easy it is to use. If your target customer is an older, retired, leisure traveler who isn’t as likely to be tech savvy, is it worth it to pay a steep commission for customers who aren’t there?
The solution? Balance. In Part 2 of this two-part article we’ll take a look at how to spread your hotel global distribution efforts in an effective pattern.
Step up your hotel global distribution strategy and get noticed. Contact us today!