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?
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.
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.
Almost every touchpoint with our guests now involves technology in some way. As the CEO, it is ultimately your responsibility to ensure that technology is given the priority, resources, and budget required.
Although an economic recession and hotel industry downturn are far from certain, economic indicators, investor and corporate sentiment, as well as the recent operating performance of hotels in various sectors, point to an impending slowdown.
