Hotel Brand Erosion and Commoditization
Compete on more the just price!
A lot has been written and talked about hotel brand and price erosion in the past few months and years. Hotels have vocally expressed their disgruntlement about the commoditization caused by online travel agencies. Indeed the increase of online distribution in the hotel and travel industry has created a high level of price transparency and rate parity strategies contribute to the commoditization of the hotel product and services.
But what are hotels doing to avoid brand erosion? Do you have an active strategy in place to build a brand value proposition for your hotel? Unfortunately in the first quarter of 2009 we have witnessed many hotels 'slashing rates' and 'dumping rooms' to offset weakening demand. Some hotels have even gone as far a launching 'anti-crisis' offers.
What to do? read more here