Will the value of brands remain sustainable in today's distribution age?
World-class distribution was once one of the key value-adds of signing up with a hotel chain or brand. Today, however, this advantage has been severely eroded to the point where independent properties can access better and more cost-effective distribution channels.
From a distribution perspective, is the era of the hotel chain coming to an end?
This viewpoint is co-created with IDeaS a SAS company
Brands (Hotel Chains) provide tremendous structure to a hotel's distribution strategy. However, I wouldn't describe the larger hotel companies as “brands”; they are distribution machines that include a CRS, Loyalty program, property management system and connectivity solutions that cater to different tiers (economy, midscale, luxury).
A brand is a sense of connection that goes beyond a traditional earn and burn loyalty program. That said, hotel chains have a bigger role to play in corporate markets and/or markets that don't run high occupancies. I expect to see continued consolidation as hotel chains seek greater distribution and promote themselves as market-places similar to online agencies and or Airbnb.
Even though women make 50% of the workforce in hospitality, gender equality remains a myth in our sector. There is a significant gap in terms of rank, pay, role and general progression in women's leadership positions and female representation falls as women rise in their careers with only 5% going on to make the top job of CEO.
Hospitality being the embodiment of people connecting to people, our human capital then automatically should be the most important asset we have. Every hotel or chain always talks a great deal about how important they judge their associates and all they do for them.
Everyone agrees that 2020 has been the "annus horribilis" for the world and in particular the hotel industry. However, despite having to tackle unprecedented challenges, many companies grasped that the crisis also presented a unique opportunity to re-invent and re-imagine their business.
World-class distribution was once one of the key value-adds of signing up with a hotel chain or brand. Today, however, this advantage has been severely eroded to the point where independent properties can access better and more cost-effective distribution channels.
